Funds From the perspective of capital relationships, funds refer to funds that are used exclusively for a specific purpose and are independently accounted for.
These include not only the endowment insurance funds, retirement funds, relief funds, and education incentive funds unique to various countries, but also China's unique financial special funds, employee collective welfare funds, energy and transportation key construction funds, and budget adjustment funds.
In terms of organizational nature, a fund refers to an institution or organization that manages and operates funds that are used exclusively for a specific purpose and are independently accounted for.
This kind of fund organization can be an unincorporated institution (such as a special financial fund, an education award fund in colleges and universities, an insurance fund, etc.), or a commercial legal person institution (such as China's Soong Ching Ling Children's Foundation, Sun Yefang Economics Award Foundation, Mao Dun
Literary Award Foundation, Ford Foundation, Hobright Foundation in the United States, etc.), or it can be a corporate legal entity.
Investment funds Investment funds refer to using the mechanism of modern trust relationships to combine various investments in the form of funds in accordance with the basic principles of mutual investment, sharing of returns, and sharing of risks and certain principles of a joint-stock company.
An investment organization system that pools funds dispersed among investors to achieve expected investment purposes.
Securities Investment Fund Securities investment fund is a collective securities investment method with maximum benefit sharing and maximum risk sharing, that is, by issuing fund units, investors’ funds are pooled, hosted by the fund custodian, and managed and managed by the fund manager.
Use funds to invest in stocks, bonds, foreign exchange, currencies and other financial instruments to obtain investment income and capital appreciation.
Investment funds have different names in different countries or regions. They are called "mutual funds" in the United States, "unit trust funds" in the United Kingdom and Hong Kong, and "securities investment trust funds" in Japan and Taiwan.
Differences between securities investment funds, stocks and bonds: 1. The main factors affecting prices are different.
When the macroeconomic and political environment are roughly the same, the price of stocks is mainly affected by factors such as market supply and demand, the operating conditions of listed companies, etc.; the price of bonds is mainly affected by market deposit interest rates.
The price of securities investment funds is mainly affected by market supply and demand or the net asset value of the fund.
Among them, the price of closed-end funds is mainly affected by market supply and demand; the price of open-end funds mainly depends on the net value of fund units.
2. Investment returns and risks are different.
Under normal circumstances, the return of stocks is uncertain; the return of bonds is certain; although the return of securities investment funds is also uncertain, its characteristics determine that its return is higher than that of bonds.
In addition, in terms of risk level, according to theoretical speculation and past investment practices, the risk of stock investment is greater than that of funds, and the risk of fund investment is generally greater than that of bonds.
3. The investment payback period and method are different.
Stock investment has no time limit, and if it is to be recovered, it can only be liquidated at the market price in the securities exchange market; bond investment has a certain time limit, and the principal and interest can be recovered after the expiration; closed-end funds among investment funds can be liquidated in the market
, after the expiration of the duration, investors can share the corresponding remaining assets according to the fund shares they hold; open-end funds have no duration, and investors can request redemption from the fund manager at any time.