Consignment funds refer to funds issued by securities companies, commercial banks or other intermediaries entrusted by fund issuers. Compared with self-issuance, this issuance method has the advantages of wide distribution scope, short financing time and huge funds, but the issuance procedure is complicated and the issuance cost is high. At present, most domestic closed-end funds and open-end funds adopt this method.
Funds in the stock market are called "stock funds": stock funds, also known as stock funds, refer to funds that invest in the stock market. There are many kinds of securities funds. At present, in addition to stock funds, there are also bond funds, stock-bond mixed funds and money market funds in China.
There are many kinds of funds. According to different standards, securities investment funds can be divided into different types:
(1) According to whether the fund unit can be increased or redeemed, it can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market.
(2) According to different organizational forms, it can be divided into corporate funds and contractual funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.
(3) According to the different investment risks and returns, it can be divided into growth funds, income funds and balanced funds.
(4) According to different investment objects, it can be divided into stock funds, bond funds, money market funds and futures funds.