What's the difference between securities and funds?
The biggest difference between securities and funds is that the former is an investment product and the latter is the product of collective investment model. In a broad sense, securities refer to vouchers for purchasing various financial products, that is, stocks, government bonds, shares of securities investment funds and other securities legally recognized by the State Council belong to securities, while in a narrow sense, they are individual stock products. For the fund, it is actually an investment tool, through which investors can buy securities products.
In our usual transactions, individual investors participate in securities investment by opening an account and then operating by themselves. However, there is a problem with this model, that is, the financial market is relatively professional and it is difficult for investors to understand the situation. In this regard, the fund came into being. That is, investors hand over funds to fund companies, and then a special management team (fund manager) conducts unified investment management. Investors and fund companies enjoy the benefits and take risks, and investors will pay a certain management fee.
To sum up, this is the difference between securities and funds.