1. Less investment and greater benefits.

The essence of investment funds is to pool the small money of many investors into big money. Investment funds are calculated according to the purchasing unit, and the amount of each unit ranges from several yuan to several tens of yuan, and some even have no investment limit. Investors can use their own funds.

The decision to buy more and buy less solved the embarrassment of small investors wanting to enter the market with less money. Because of the large amount of funds, investment funds are easy to achieve economies of scale when buying and selling stocks or other securities.

Usually, when buying and selling stocks, you have to pay a certain commission to brokers, and the amount of commission decreases with the increase of trading volume; In other words, investment funds can often get preferential discounts in large-value securities transactions.

Therefore, for investors, investment funds and individuals relatively reduce commission expenses, reduce investment costs and improve investment efficiency.

2. Expert management, save worry and trouble

Investment fund is an indirect investment tool. All the funds raised by the fund are operated by professional investment talents. Therefore, an investment fund means that every investor spends very little money and hires a professional investment consultant to help him manage his finances.

Obviously, these experts have much richer investment theory and experience than ordinary investors. They specialize in studying and analyzing the domestic and international economic situation and international trends, and can keep abreast of the operating conditions of various industries and listed companies and the ever-changing market information.

Keep close contact with domestic and foreign securities markets and securities companies. This provides a reliable guarantee for ordinary investors who buy investment funds to obtain relatively stable and rich investment income in the ever-changing securities market. Therefore, investment funds are safer and more worry-free than investing in other financial commodities.

3. Securities investment, low risk

In order to protect the interests of investors, investment funds have a principle of portfolio diversification, that is, certain funds are invested in different securities and other profitable industries in different proportions.

This is one of the biggest characteristics that distinguishes investment funds from other investment methods. Generally speaking, the relevant provisions of investment funds clearly stipulate that the portfolio should not be less than how many varieties, and even single-market funds are not allowed to buy only one or two stocks, and there are certain proportional restrictions on buying a stock.

Through portfolio investment, the investment risk of investment funds is shared by all investors on the one hand; On the other hand, it is dispersed by different kinds of securities and other investment projects. Therefore, the risk of investment funds is relatively small.

4. Strong liquidity and low cost.

Although an investment has high returns and is safe, it is not a good investment if it is illiquid and difficult to sell. Compared with savings, gold and real estate investment, another advantage of investment funds is their strong liquidity.

Generally, open-end funds will be quoted and bought publicly every day, and investors can buy and sell at any time according to their actual needs. Closed-end funds can also be traded on stock exchanges.

The whole transaction and clearing process can be completed within 1 day at the earliest. When investing in stocks, you may sometimes encounter the situation that the shares you hold cannot be sold, and you will be trapped, which will lead to problems in capital liquidity. Investment funds will not have this problem, and fund companies are obliged to buy back beneficiary certificates at the request of investors.

5. Special storage, high security.

In order to ensure the safety of investment fund assets, it is clearly stipulated in trust deed that fund assets cannot be controlled by the fund company, but must be held and kept by another independent trustee company, thus avoiding the phenomenon that fund managers abuse power for personal gain.

Trustee companies are often banks, large multinational consortia or powerful investment institutions. They have a good reputation, advanced equipment and developed information network. The registered place of the fund is usually overseas, and the assets of the fund can be offshore. Even if the political or economic policies of the investor's country change, the investor's funds will not be frozen.

6. Variety and flexible investment.

In the developed foreign securities market, there are a large number of investment funds, involving all financial investment fields, and most of them invest internationally or offshore. Any industry or product that is valued by the market can be developed and utilized through the establishment and purchase of funds.

If you think a country's bonds are worth investing but you can't buy them there, you can buy the country's bond funds through your country's fund management company.

If you are optimistic about a country's stock market, you can also achieve your investment goals by subscribing to the country's funds. And there are many kinds of funds for you to choose from, such as bond funds, money funds, preferred stock funds or blue-chip funds. It can be seen that there are many kinds of investment funds, and investors can choose any fund that meets their own needs for flexible investment according to their actual situation.

7. Stable operation and considerable benefits.

Investment funds are similar to stocks, and their total assets are calculated by shares;

Fund assets are divided into several "fund units", and investors share the value-added income of the fund according to their shares of "fund units". Moreover, because investment funds take measures such as portfolio investment, their risks are lower than those of stocks, while their returns are generally higher than those of bonds.

Introduction to the characteristics of private equity funds;

Private Equity Fund

The scope of private equity funds is narrower than that of Public Offering of Fund, but they are all institutions or individuals with strong capital strength and high quality of capital composition, which makes the funds raised by them not necessarily inferior to that of Public Offering of Fund in quality and quantity. It can be an individual investor or an institutional investor.

property rights

In addition to pure equity investment, there are disguised equity investment methods (such as convertible bonds or corporate bonds with warrants) and portfolio investment methods with equity investment as the mainstay and debt investment as the supplement.

It's very risky

The risk of private equity investment first stems from its relatively long investment cycle. Therefore, if private equity funds want to make profits, they must make some efforts, not only to meet the financing needs of enterprises, but also to bring benefits to enterprises, which is bound to be a long-term process.

Participatory management

Generally speaking, private equity funds have a professional fund management team with rich management experience and market operation experience, which can help enterprises to formulate development strategies that meet market demand and improve their management level. However, private equity investors only participate in enterprise management and do not control enterprises.

The differences between private equity funds and private venture capital funds are as follows:

1, different operation teams

Private equity investment (angel, fund) is a very broad concept. Generally speaking, such funds are only concentrated in the hands of a few people in the original founder team, because the economic structure of the whole company was founded and developed by these people.

Venture capital fund is operated by a group of people with professional knowledge and experience in science, technology or finance, and specializes in investing in companies with development potential and rapid growth.

2. The liquidity of investment is different.

Private equity funds usually invest in mature enterprises and Pro-IPO enterprises, which are only one step away from listing. Private equity fund investment helps these enterprises meet the listing standards, and then exits by selling their shares in the stock market.

Therefore, the investment price of private equity investment funds is usually higher. Venture capital is a long-term investment with poor liquidity, and it usually takes 5- 10 years to get a significant return on investment.

3. Different risks

Venture capital funds can be withdrawn through mergers and acquisitions by large companies, selling to other private equity funds or IPO when raising funds for the second time, so the price is relatively low, the cost of private equity investment is relatively high and the cycle is relatively long. This has greatly deepened the risk of private equity investment.

4. Different scales

The starting point of venture capital funds is relatively difficult, because it is difficult to find companies with real potential that have not been discovered, and to test investors' judgment requires a professional management team.

Private equity funds generally refer to funds engaged in private equity (non-listed company equity) investment. At present, there are many private equity funds in China, including Sunshine Private Equity Fund and so on. The number of private equity funds is still increasing rapidly.