1. What is a fund?

As an investment tool, securities investment funds pool the funds of many investors and are managed by a fund custodian (such as a bank) and managed by a professional Fund management companies manage and use funds to achieve the purpose of income by investing in securities such as stocks and bonds.

For individual investors, if you have 10,000 yuan to invest, but the amount is not enough to buy a series of different types of stocks and bonds, or you simply do not have the time and energy to choose For stocks and bonds, buying funds is a good choice. For example, if you subscribe for an open-end fund, you will become the holder of the fund. The above 10,000 yuan will be converted into a certain share of fund units after deducting the subscription fee. The investments of all holders together constitute the assets of the fund. The professional team of the fund management company uses the fund assets to purchase stocks and bonds to form the fund's investment portfolio. The fund shares you hold are the epitome of the above investment portfolio.

Expert financial management is an important feature of fund investment. The investment experts equipped by fund management companies generally have profound theoretical foundations in investment analysis and rich practical experience. They use scientific methods to study financial products such as stocks and bonds, combine investments, and avoid risks.

Correspondingly, every year the fund management company will withdraw management fees from the fund assets to pay for the company's operating costs. On the other hand, the fund custodian will also draw custody fees from the fund assets. In addition, open-end fund holders need to pay directly subscription fees, redemption fees and conversion fees. Closed-end fund holders pay transaction commissions when they buy or sell units.

There are several types of funds

◇According to the organizational form, there are two types of corporate funds and contract funds. At present, domestic funds are all contract types.

◇According to whether the fund size is fixed, it can be divided into closed-end funds and open-end funds.

As of mid-September 2003, there were 86 domestic securities investment funds, with a total scale of 161.6 billion fund units, including 54 closed-end funds and 32 open-end funds.

The U.S. mutual fund industry has developed rapidly since the 1970s. As of July 2003, there were approximately 8,300 mutual funds (open-end funds) in the United States, with a net asset value of US$687 billion, of which more than 70% were held by individual investors. Investments by U.S. households in mutual funds have grown steadily since 1990. According to statistics from the Investment Company Association in May 2002, 54.2 million households (a total of 94.9 million individual investors) hold mutual funds, accounting for approximately half of the households in the United States. In 1990, 23.4 million households participated in fund investment, accounting for 25%.

◇According to different investment objects, it can be divided into stock funds, bond funds, hybrid funds, money market funds, futures funds, option funds, etc.

◇According to the characteristics of investment operations, funds can be divided into growth, income and balanced funds.

When Morningstar launched its fund star rating system in 1985, it divided funds in the U.S. market into four categories based on asset distribution: U.S. stock funds, international stock funds, taxable bond funds and municipal funds. Bond funds. In 2002, based on the above classification, Morningstar further subdivided fund types into 50 types according to investment style, investment industry, region, etc.

Clarify several misunderstandings

◇Funds are not stocks

Some investors confuse funds and stocks, but they are not. On the one hand, investors who purchase funds only entrust fund management companies to invest in stocks, bonds, etc., and when they purchase stocks, they become shareholders of listed companies. On the other hand, funds investing in many stocks can effectively diversify risks and have relatively stable returns; while single stock investments often cannot fully diversify risks, so returns fluctuate greatly and risks are greater.

◇Funds are different from savings

Since open-end funds are sold through banks, many investors think that funds are not much different from bank deposits. In fact, there is an essential difference between the two: savings deposits represent the credit of commercial banks, with guaranteed principal, fixed interest rates, and basically no risk; while funds invest in the securities market and have to bear investment risks. Savings deposits receive fixed interest income, while investment funds have the opportunity to share in the gains brought by the rise in the underlying stock and bond markets.

◇Funds are different from bonds

Bonds are certificates of creditor-debt relationships that agree to repay principal and interest on schedule. Domestic bond types include treasury bonds, corporate bonds and financial bonds. Individual investors cannot purchase financial bonds. Treasury bonds have no credit risk, and interest is tax-free; corporate bonds have higher interest rates, but are subject to a 20% interest tax and have certain credit risks. In contrast, funds that mainly invest in stocks have less fixed returns and higher risks; while bond funds that only invest in bonds can use portfolio investments to improve the stability of returns and diversify risks.

◇Funds are risky

Investing in funds is risky. In other words, the 10,000 yuan you initially used to purchase the fund may result in losses. Since the fund invests in securities, it must bear the investment risks of the underlying stock market and bond market.

Of course, capital-guaranteed funds with clear principal guarantee clauses in the prospectus are excluded. In addition, when open-end funds experience huge redemptions or suspend redemptions, holders will face the risk of difficulty in realizing cash.

◇Funds are suitable for long-term investment

Some investors invest in funds with the mentality of gaining short-term price differences in the stock market, such as frequent buying and selling of open-end funds, which often end in disappointment. Because firstly, the sum of subscription fees and redemption fees is not low, and secondly, the fluctuation of the fund's net value is much smaller than that of stocks. Funds are suitable for long-term investments that pursue stable returns and low risk.

2. What is a national debt?

The so-called national debt is a debt borrowed by the state, that is, a national bond. It is a written loan voucher issued by the state to investors to raise funds, promising to Within the period, the interest will be paid on schedule and the principal will be returned when due according to the agreed conditions.

my country’s national debt specifically refers to the national public debt issued by the Ministry of Finance on behalf of the central government. It is guaranteed by the national fiscal reputation and has a very high credibility. It has always been known as “gilt-edged bonds”. Stable investors like to invest in national debt. . There are three types: voucher type, physical coupon type, and accounting type.

Types of treasury bonds

There are many types of treasury bonds, which can be divided into three major categories according to their bond form, namely: bearer (physical) treasury bonds, certificate-type treasury bonds and accounting-type treasury bonds . Among them, bearer treasury bonds are no longer common, while the latter two are the main forms at present.

(1) Bearer (physical) treasury bonds

A bearer treasury bond is a bond that does not record the name of the creditor or the name of the company on its face. It usually appears in the form of a physical bond, also known as Physical or Treasury bills.

The bearer treasury bonds are the treasury bonds with the longest history of issuance in our country. Since the founding of the People's Republic of my country, the treasury bonds issued in the 1950s and since 1981 have mainly been bearer treasury bills.

When issued, it is publicly sold to the public through various bank savings outlets, the Treasury Bond Service Department of the financial department, and the business outlets of Treasury bond operating institutions. Investors can also use their securities accounts to entrust securities operating institutions to purchase them on the stock exchange. .

The cash redemption of bearer treasury bonds shall be handled by banks, postal system savings outlets and fiscal treasury bond intermediaries; or redemption shall be carried out on-site at trading venues.

The general characteristics of bearer treasury bills are: they are bearer, cannot be reported as lost, and can be listed and circulated. Since they are anonymous and cannot be reported as lost, their holding security is not as good as certificate-type and account-based treasury bills, but the purchase procedure is simple. Because it can be listed and transferred, it has strong liquidity. The listing transfer price depends on the supply and demand situation in the secondary market. When market factors change, the price will fluctuate greatly. Therefore, there is an opportunity to obtain greater profits, but it is also accompanied by certain risks. Generally speaking, bearer Treasury bills are more suitable for financial institutions and buyers with strong investment awareness.

(2) Certificated treasury bonds

Certificated treasury bonds refer to treasury bonds issued by the state by filling out "treasury bill collection certificates" instead of printing physical bonds. my country began to issue certificate-type treasury bonds in 1994. The coupon form of certificate-type treasury bonds is similar to bank time deposit certificates, and the interest rate is usually higher than the bank deposit interest rate for the same period. It has characteristics similar to but better than savings. It is often called "savings-type treasury bonds" and is a personal investment for the purpose of savings. ideal investment method.

Certificate-style treasury bonds are issued to the public through various bank savings outlets and the treasury bond service department of the financial department, mainly for the common people. Interest accrues from the date of purchase by investors. They can be registered and reported as lost, but they cannot be listed and circulated. .

If investors need to cash out the certificated treasury bonds after purchasing them, they can go to the original purchase outlet to redeem them in advance. When redeeming them in advance, in addition to repaying the principal, the interest will be calculated based on the actual number of days of holding and the corresponding interest rate bracket. The handling agency charges a handling fee of two thousandths of the principal amount redeemed. For certificate-type treasury bonds redeemed in advance, the handling outlets can also sell them a second time.

Compared with savings, the main features of certificated treasury bonds are safety, convenience and moderate returns. Specifically: 1. There are many sales outlets for certificate-type treasury bonds, which are convenient to purchase and redeem, and the procedures are simple; 2. The loss can be reported in the name, and the security of holding is better; 3. The interest rate is 1 to 2 higher than the bank deposit interest rate for the same period. percentage points (but lower than bearer and book-keeping treasury bonds). When redeemed in advance, progressive interest rates are calculated based on the holding period; 4. Although certificate-type treasury bonds cannot be traded on the market, they can be redeemed in advance, are liquidated flexibly, and are located nearby. If investors encounter special needs, they can redeem cash at the original point of purchase at any time; 5. The interest risk is small. Interest on early redemption is calculated based on the length of the holding period and the corresponding interest rate. The interest rates of each level are higher than or equal to bank deposits in the same period. Interest rate, there is no risk of early withdrawal of fixed savings deposits and only current interest can be calculated; 6. There is no market risk, certificated government bonds cannot be listed, and the price (principal and interest) when redeemed in advance does not change with changes in market interest rates, which can be avoided Market price risk.

(3) Book-entry treasury bonds

Book-entry treasury bonds are also called paperless treasury bonds. It means that the treasury bonds held by investors are registered in securities accounts. A Treasury debt for which only a receipt or statement is obtained to verify ownership.

my country has launched accounting-type treasury bonds since 1994. The bond feature of book-entry treasury bonds is that treasury bonds are paperless. Investors do not receive paper bonds or certificates when purchasing, but a sum is recorded on their bond accounts.

Its general characteristics are: 1. Book-entry treasury bonds can be registered and reported as lost, and are issued in the form of certificates without certificates, which can prevent the loss, theft and forgery of securities, and have good security; 2. They can be transferred on the market and have good liquidity; 3. They have a certain maturity period. There are long and short sides, but they are more suitable for the issuance of short-term treasury bonds; 4. Book-entry treasury bonds are issued through the exchange’s computer network, which can reduce the cost of issuing securities; 5. After listing, the price will follow the market, and there is the possibility of obtaining greater profits, but at the same time It also comes with certain risks.

It can be seen that accounting-type treasury bonds have the characteristics of low cost, good returns, good safety and strong liquidity.

Due to the issuance and trading characteristics of book-entry treasury bonds, it is a treasury bond designed mainly for the requirements of asset preservation and appreciation for individual investors with strong financial awareness and institutional investors with cash management needs. Variety, investors hold it in custody at designated securities firms, which facilitates circulation and transactions, has strong liquidity, and is not easy to lose. They can also obtain high profits by buying low and selling high.

Compared with the three types of treasury bonds, bearer type, certificate type and accounting type, each has its own characteristics. In terms of profitability, bearer and book-entry treasury bonds are slightly better than certificate-type treasury bonds. Generally, the coupon rates of bearer and book-entry treasury bonds are slightly higher than certificate-type treasury bonds of the same maturity. In terms of safety, certificate-type treasury bonds are slightly better than bearer-type treasury bonds and accounting-type treasury bonds, and among the latter two, accounting-type treasury bonds are slightly better. In terms of liquidity, book-entry treasury bonds are slightly better than bearer treasury bonds, and bearer treasury bonds are slightly better than certificate-type treasury bonds.

The fund was very profitable in 2006, and it should be about the same in 2007. You may earn less than 06, but at least you won’t lose money. Most of my friends earn 50%, but at most I have seen 100%. hey-hey. . .

Action is worse than excitement