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What are funds, private placements and bonds?
1. The Modern Chinese Dictionary published by the Commercial Press defines funds as "funds reserved for starting, maintaining or developing a certain cause.

Gold or special funds. "Such funds must be earmarked and accounted for separately, such as poverty alleviation funds, education funds, courageous reward funds, energy and transportation key construction funds, etc.

The fund here has a different meaning from the above. It is the abbreviation of "Securities Investment Fund" and a financial investment tool. Its characteristics are as follows.

1. Expert financial management is an indispensable part of people's contemporary life. In order to resist inflation and realize the preservation and appreciation of financial assets, investment and financial management should and must be carried out. However, as an ordinary retail investor, they lack sufficient financial knowledge and have little time and energy to take care of it. An investment fund is a tool for you to invest in the financial market, such as stocks and bonds, with little money.

Fund companies have a group of experts with high academic qualifications and rich investment experience. They have keen observation, analysis and judgment ability, can grasp a lot of information in time, can make a more correct prediction of the price change trend of various varieties in the financial market, avoid investment decision-making mistakes to the maximum extent, and improve the investment success rate. For those small and medium-sized investors who have no time or are unfamiliar with the market and can't make special investment decisions, investment funds can actually gain expert advantages in market information, investment experience, financial knowledge and operation technology, so as to avoid losses caused by blind investment as much as possible. Cheng Siwei, the former deputy director of the National People's Congress Standing Committee (NPCSC) and a famous economist, once said, "As an institutional investor of expert financial management, the fund has relatively rational behavior and strong ability to prevent risks, which is conducive to the stable development of the market; On the other hand, funds can attract more people to enter the capital market. Retail investors buy funds and give the money to the fund manager to operate for him. The fund gives full play to the advantages of expert financial management, which can not only reduce the cost of retail investors, but also avoid greater risks. " Therefore, experts of fund companies can make less money when the stock market falls and make more money when the stock market rises.

2. There are so-called "makers" who collectively invest in the stock market, that is, those institutions or large households with huge funds have the ability to directly or indirectly manipulate the market. Bankers make profits through various means, causing losses to some small and medium-sized investors. Individuals have limited funds for investment and financial management, and the amount is small. Compared with well-funded institutional investors and wealthy families, they are in a weak position and often vulnerable. The entry threshold for fund investment is low, and you can buy it as long as 1 0,000 yuan. However, if a large number of small and medium-sized investors are concentrated, fund companies will be in a strong position in investment activities.

3. Enjoy the benefits and take risks.

The more customers a fund company has, the greater the amount of money it can manage on behalf of customers, and the greater the income, the better the economic benefits. Therefore, under normal circumstances, fund companies are bound to make profits for their customers, thus improving their reputation and popularity, increasing customers and expanding total assets. In the case of fund profit, the company and customers have the best of both worlds and are happy. In the case of fund losses, it is necessary to bear risks.

A fund is a combination of stocks and bonds.

The investment scope of the Fund can be summarized as: stocks, bonds and other investment instruments permitted by laws and regulations, including money market interest-bearing instruments such as large deposits and central bank bills, but mainly a combination of stocks and bonds. "You can't put all your eggs in one basket" is the motto of securities investment. But to realize the diversification of investment assets, it needs certain financial strength. For small investors, due to limited funds, they can only invest in a few stocks. When the stock market falls or the financial situation of listed companies deteriorates, the principal will suffer great losses, and the fund can help small and medium investors solve this difficulty. The Fund is well-funded. Within the investment scope stipulated by law, it invests the funds in different types of securities with different maturities in different proportions, so as to minimize the risk, which is much smaller than a single investment in a stock.

Looking at the current investment channels in the market, there are stocks, bonds, funds, precious metals (gold and silver), commodity futures, stock index futures, foreign exchange, pools, warrants and so on. In addition to funds, they all need profound knowledge and rich operational experience, and the starting threshold is high, so it is difficult for ordinary amateur small and medium investors to get involved. From the above contents and the introduction of other chapters in this manual, it can be clearly seen that the fund is a tool suitable for public investment.

2. Public offering of funds is the public offering of securities investment funds to unspecified investors under the supervision of government departments. Under the strict supervision of the law, these funds have industry norms such as information disclosure, profit distribution and operation restrictions. Its characteristics are: 1) many investors as the issue target; (2) Great fund-raising potential; (3) A wide range of investors (investors without specific objects); (4) You can apply for listing on the exchange. At present, Public Offering of Fund is the most transparent and standardized fund. Public Offering of Fund has strict regulations on the qualifications of fund management companies and fund asset custodians, which are strictly supervised by the regulatory authorities. Therefore, Public Offering of Fund's assets are safer and more easily accepted by ordinary people.

Compared with Public Offering of Fund, private equity funds have the following advantages: (1) Because private equity funds face a few specific investors, their investment objectives may be more targeted, and they can provide tailor-made investment service products according to the special needs of customers; (2) Generally speaking, private equity funds require fewer procedures and documents and are subject to fewer restrictions. General regulations are not as strict and detailed as public offering funds. For example, if the investment restrictions on a single stock are relaxed, an investor can hold more than a certain proportion of fund shares, and the minimum limit on the size of private equity funds is even lower. Therefore, the investment of private equity funds is more flexible; (3) In terms of information disclosure, private equity funds don't need to disclose detailed private placements regularly like Public Offering of Fund. Compared with public offering, private placement is a kind of non-public propaganda, and it is a collective investment that raises funds privately from specific investors. There are basically two ways, one is a contractual collective investment fund based on signing the entrusted investment contract, and the other is a corporate collective investment fund based on * * * contributing shares to establish a joint-stock company. Private equity funds raise funds through non-public means. There are only a few specific investors to raise funds, and the circle is small but not low. Different from the strict information disclosure requirements in Public Offering of Fund, the requirements of private equity funds in this respect are much lower, and the government supervision is relatively loose, so the investment of private equity funds is more hidden, the operation is more flexible, and the chances of obtaining high returns are correspondingly greater. Because of its non-publicity, private equity funds have become the most secretive capital force in China's capital market.

Private equity fund investors can negotiate with fund sponsors to determine the investment direction and objectives of the fund, which has the nature of agreement. Fund sponsors unilaterally decide related matters, and investors passively accept them. Its sale and redemption are carried out by the fund manager through private consultation with investors.

In view of the fact that the private investment portfolio generally only needs to be published privately for half a year or a year, the government's supervision over it is far looser than that of Public Offering of Fund, so the investment is more hidden and the chances of obtaining high returns are greater. However, private equity funds also have obvious defects: private equity funds are relatively loosely regulated by the government, and their operation lacks transparency, and there may be illegal acts such as insider trading and market manipulation, which will not be conducive to the protection of fund holders' interests. Although they may get higher returns, they contain greater investment risks, such as moral hazard and agency risk of fund managers. In addition, the number of fund securities issued in this way is generally small, and investors' recognition and liquidity are poor, so they cannot be listed and traded. (4) The entry threshold for private equity funds is relatively high, much higher than 1 10,000 yuan in Public Offering of Fund, and it is a place for rich people to play.

There is a private equity fund called Sunshine Private Equity Fund, which is issued by a trust company and filed by the regulatory authorities. It mainly invests in the secondary securities market, and the funds are managed by a third-party bank, and its performance reports are published regularly. The area between Sunshine Private Equity Fund and general (so-called "grey") private equity funds.

More importantly, it is mainly standardized and transparent, because issuing on the platform of trust companies can ensure the safety of private subscribers' funds. Sunshine private equity funds generally only refer to private equity funds issued in an "open" way.

3. The so-called bonds are securities issued by the state, local governments, listed companies or private companies to solve financial difficulties. The interest commitment of bonds is contractual. Regardless of the financial situation of the bondholders, the bond issuer is obliged to pay the principal and interest to the bondholders on the due date. The face value of different bonds varies greatly, but now considering the convenience of buying, selling and investing, they tend to issue bonds with small face value. The bond price refers to the price when the bond is issued. Theoretically, the face value of a bond is its price. But in fact, due to various considerations of issuers or changes in supply and demand of capital markets and interest rates, the market price of bonds often deviates from its face value, sometimes higher than the face value, and sometimes lower than the face value. In other words, the face value of a bond is fixed, but its price is constantly changing. The issuer pays interest and principal according to the face value of the bond rather than the price. Bond interest rate is the ratio of bond interest to bond face value. Bond interest rates are divided into fixed interest rates and floating interest rates. The interest rate of bonds is generally the annual interest rate, and the annual interest rate can be obtained by multiplying the par value by the interest rate. Bond interest rate is directly related to bond income. The factors that affect the bond interest rate mainly include the bank interest rate level, the issuer's credit status, the repayment period of bonds and the supply and demand of the capital market. The repayment period of bonds refers to the time from the issuance of bonds to the repayment of principal. The repayment period of bonds ranges from several months to more than ten years. The repayment period should be indicated on the front of the bond. The bond issuer must repay the principal on the maturity date of the bond. The length of bond repayment period mainly depends on the issuer's capital demand period, the changing trend of market interest rate in the future and the developed degree of securities trading market. The repayment method of bonds refers to one-time repayment or installment repayment. , and the repayment method should be indicated on the front of the bond. The interest rate of bonds is usually higher than that of deposits. The yield of bonds is not completely equal to the coupon rate of bonds, but mainly depends on the buying and selling price of bonds. The security of bonds is manifested in the unconditional recovery of principal by bondholders at maturity. Issuers of bonds must undergo strict examination, and only fund-raisers with high reputation are approved to issue bonds. Most bonds issued by companies need guarantees. When the issuing company goes bankrupt or liquidates, it shall give priority to repaying the bondholders' bonds. Therefore, the security of bonds is still guaranteed, which is much less risky than other securities investment.

Bond investment can earn a fixed interest income, but also can earn the price difference of market transactions. With the rise and fall of interest rates, if investors can buy and sell in time, they can get more benefits. Investing in bonds, on the one hand, can obtain a stable interest income higher than that of bank deposits, on the other hand, it can use the changes in bond prices to buy and sell bonds and earn spreads. Listed bonds have good liquidity. When bondholders are in urgent need of funds, they can sell them in the trading market at any time. With the further opening of the financial market, the liquidity of bonds will continue to strengthen. Therefore, as an investment tool, bonds are most suitable for people who want to get fixed income and have long-term investment goals.