1. What is a fund and what is its meaning?
Funds have broad and narrow definitions. A fund in a broad sense refers to a certain amount of funds set up for a certain purpose.
Such as trust and investment funds, provident funds, insurance funds, retirement funds and various foundations. People usually refer to funds mainly as securities investment funds.
Funds can not only invest in securities, but also invest in enterprises and projects. By issuing fund shares, fund management companies concentrate investors' funds, which are managed by fund custodians (that is, qualified banks) and managed and used by fund managers to invest in financial instruments such as stocks and bonds, and then * * * bear the investment risks and share the benefits.
Second, the fund's legal provisions:
Securities Investment Fund Law Article 3 The rights and obligations of fund managers, fund custodians and fund share holders shall be stipulated in the fund contract in accordance with this Law. Fund managers and fund custodians shall perform their fiduciary duties in accordance with this Law and the provisions of fund contracts. Fund share holders enjoy income and bear risks according to their fund shares.
Article 4 The activities of securities investment funds shall follow the principles of voluntariness, fairness, honesty and credibility, and shall not harm the national and social public interests.
Article 5 A fund contract shall stipulate the mode of fund operation. The fund operation mode can be closed, open or other ways.
3. What kinds of funds can be divided into?
According to different standards, securities investment funds can be divided into different types:
1. According to whether the fund unit can be increased or redeemed, it can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market.
2. According to different organizational forms, it can be divided into corporate funds and contractual funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.
3. According to the difference of investment risk and income, it can be divided into growth fund, income fund and balanced fund.
4. According to different investors, it can be divided into stock funds, bond funds, money market funds and futures funds.