The securities market is the product of the development of market economy to a certain stage, and it is a market to solve the contradiction between capital supply and demand and liquidity. The securities market realizes the connection between financing and investment by issuing and trading securities, which effectively solves the contradiction between supply and demand of funds and the adjustment of capital structure. In the developed market economy, the securities market is an important part of a complete market system, which not only reflects and regulates the movement of monetary funds, but also has an important impact on the operation of the whole economy.
According to the provisions of the Securities Investment Fund Law, the fund property shall be used for the following investments:
(1) Stocks and bonds listed and traded;
(2) Other securities as stipulated by the the State Council Securities Regulatory Authority.
In most cases, from the perspective of fund investment, the securities market mainly refers to the stock market (referred to as "stock market") and the bond market (referred to as "bond market").
Generally speaking, when the stock market shows an upward trend, the net value of funds participating in stock investment (such as stock funds and partial stock funds) will rise, and vice versa; Similarly, when the bond market rises, the net value of bond funds will generally rise. Therefore, the fluctuation of fund net value and the fluctuation of securities market generally show the same direction.
The investment and research team of fund companies can make fund investors get excess returns in the bull market through active management strategies such as stock selection (bonds) and timing.
For example, according to the data of Galaxy Securities Fund Research Center, as of February 6, 2007, the net growth rate of large-cap funds in China this year was as high as 195.68%, ranking first among all stock funds, far exceeding the increase of stock market index in the same period.
In the volatile market, the fund also has the characteristics of resilience. Since101October 16, the market has been lowered from the highest point of 6 124, with the adjustment range exceeding 20%. Morningstar classification 172 stock funds, from10/0/0 on October 3 1 to11on October 30, 16 funds fell less than/ Because of the characteristics of fund portfolio investment and professional management, the unsystematic risk of investment can be greatly reduced.