Fund investment is an indirect way of securities investment. 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 expected annualized income. Generally speaking, the securities investment fund is an investment tool that collects the funds of many investors and gives them to the bank for safekeeping, and professional fund management companies are responsible for investing in stocks, bonds and other securities in order to maintain and increase the value.

Conditions of establishment

"1", the name should comply with the "Regulations on the Administration of Name Registration", and the words "investment fund" are allowed to be used in the names of large-scale investment enterprises.

The words "venture capital fund, venture capital fund, equity investment fund and investment fund" can be used in the trade terms of "2" and its name. As an administrative division, "Beijing" is allowed to be used between trade names and industry terms.

3. Fund type: the registered capital (contribution) of the investment fund company is not less than 500 million yuan, all of which are contributed in cash, and the paid-in capital (contribution) at the time of establishment is not less than 6,543.8 billion yuan; The registered capital shall be fully paid in accordance with the Articles of Association (partnership agreement) within 5 years. "

4. The contribution of a single investor shall not be less than 6,543,800,000 yuan (except for the general partner in a limited partnership).

"5", at least 3 senior executives have experience in equity investment fund management or related business.

"6", the business scope of fund enterprises is approved as: investment, investment management and consulting of non-securities business. (Fund enterprises may apply to engage in other business projects outside the above business scope, but shall not engage in the following business:

(1), granting loans;

(2) publicly traded securities investment or financial derivatives trading;

(3) Raising funds publicly;

(four) to provide guarantees for enterprises other than the invested enterprises. )

"7" Management fund company: investment fund management: "The registered capital (contribution amount) is not less than 30 million yuan, all of which are contributed in cash, and the paid-in capital (contribution amount) at the time of establishment"

8. The contribution of a single investor shall not be less than 6,543,800 yuan (except for the general partner in a limited partnership).

9. The business scope of managed fund enterprises is approved as: investment in non-securities business, investment management and consulting.

Classification of fund investment

1, depending on the filling method

According to the different ways of raising funds, securities investment funds can be divided into Public Offering of Fund and private equity funds. Public offering fund refers to a securities investment fund that raises funds from public investors by public offering and invests in securities. It is open, realizable and highly standardized. Private placement fund refers to a securities investment fund that raises fund funds from specific investors in a non-public way and invests in securities. It is non-public, fund-raising, large investment, closed and unlisted.

2. According to whether it can be listed and traded.

According to whether it can be listed on the stock exchange, securities investment funds can be divided into listed funds and unlisted funds. A listed fund refers to a securities investment fund whose fund shares are listed and traded on a stock exchange. For example, transactional open-end index funds (ETFs), listed open-end funds (LOF) and closed-end funds. Unlisted funds refer to securities investment funds whose fund shares cannot be listed and traded on the stock exchange. Including realizable funds and non-negotiable funds. A realizable fund refers to a securities investment fund, such as an open-end fund, which can recover its investment through "redemption" although the fund is not listed on the stock exchange. Non-circulating funds refer to securities investment funds, such as some private equity funds, which can neither be publicly traded on the stock exchange nor redeemed to recover their investment.

3, according to the operation mode

According to the different modes of operation, securities investment funds can be divided into closed-end securities investment funds and open-end securities investment funds. Closed-end securities investment funds, referred to as closed-end funds, are also called fixed-end securities investment funds. It refers to a securities investment fund whose capital scale does not increase or decrease within a specified time (also called "closed period") after a predetermined number of funds are issued. From the combination characteristics, it has important characteristics such as equity, creditor's rights and supervision.

Open-ended securities investment fund

Open-end securities investment fund, referred to as open-end fund, is also called variable securities investment fund. Refers to the securities investment fund whose number of fund securities changes due to the issuance of new fund securities or the redemption of principal by investors. From the combination characteristics, it has important characteristics such as equity, deposit and flexibility.

4, according to the organizational form

According to different organizational forms, securities investment funds can be divided into corporate securities investment funds and contractual securities investment funds. Corporate securities investment fund, referred to as corporate fund for short, refers to a securities investment fund company (or similar legal person institution) established in accordance with the provisions of the company law (or commercial law) with legal personality and for profit; In terms of securities, it refers to securities investment fund securities issued by securities investment fund companies.

Contractual securities investment fund, referred to as contractual fund. Organizationally, it refers to the securities investment fund organization formed by issuing fund securities with the nature of beneficiary certificates in accordance with the trust deed principle; Existing securities refer to securities investment fund securities issued by securities investment fund management companies as fund sponsors.

Fund investment expenditure

The expenses incurred in the operation of the fund are fund expenses, and some expenses constitute the income sources of fund managers, custodians, sales organizations and other parties. The cost of open-end fund includes direct cost and indirect cost. Direct costs include subscription fees, subscription fees and redemption fees generated during the transaction, which are directly borne by investors; Indirect expenses are expenses deducted from the net value of the fund as stipulated by laws, regulations and fund contracts, including management fees, custody fees and operation fees.

Subscription fee and subscription fee

Subscription fee refers to the handling fee paid by investors when they purchase fund shares during the fund issuance and raising period. The common calculation method of subscription fee in China is: subscription fee = subscription amount × subscription rate, net subscription amount = subscription amount-subscription fee; The subscription rate is usually around 1%, and there are corresponding discounts with the size of the subscription amount.

Subscription fee refers to the handling fee paid by investors when they buy fund shares from fund managers during the fund's existence. The commonly used calculation method of subscription fee in China is: subscription fee = subscription amount × subscription rate, and net subscription amount = subscription amount-subscription fee. China's "Pilot Measures for Securities Funds of Open-end Investment Funds" stipulates that open-end funds can charge subscription fees, but the subscription rate shall not exceed 5% of the subscription amount. The subscription rate is usually around 1%, and there are corresponding discounts with the size of the subscription amount.

The purpose of collecting subscription fees and subscription fees for open-end funds is mainly used for commission and publicity and marketing expenses of sales organizations.

Redemption fee

Redemption fee refers to the handling fee paid by investors who already hold fund shares to fund managers during the existence of open-end funds. The purpose of redemption fee design is mainly to arrange a compensation mechanism for other fund holders. Usually, redemption fee is included in fund assets. China's "Pilot Measures for Securities Funds of Open-end Investment Funds" stipulates that open-end funds can charge redemption fees, but the redemption rate shall not exceed 3% of the redemption amount. The redemption rate is usually below 1%, and there are corresponding discounts with the length of holding period.

processing costs

The conversion fee refers to the fee that investors need to pay to convert their investments between different open-end funds managed by the same fund management company according to the provisions of the fund manager. The fund conversion fee can be calculated by rate method or quota method; When adopting the rate method, the calculation should be based on the net asset value of the fund unit, and the rate should not be higher than the subscription rate. Usually, this expense rate is very low, generally only a few tenths of a percent. The existence of switching fees is somewhat arbitrary, which is closely related to the nature of fund products and the strategy of fund management companies. For example, there is no conversion fee for the conversion between sub-funds within umbrella funds, and some fund management companies stipulate that there is no conversion fee for the conversion within a certain number of conversions, or there is no conversion fee for the conversion from bond funds to stock funds.

Fund management fee

Fund management fee refers to the fee paid to the fund manager who actually uses the fund assets and provides professional services for the fund, that is, the remuneration received by the manager for managing and operating the fund. The annual rate of fund management fee is accrued according to a certain proportion of the net asset value of the fund, and the fund management fee varies greatly with different risk expected annualized income characteristics. For example, money market funds are usually at 1% ~, and stock funds are usually at 1% ~. The management fee is accrued daily and paid by the custodian to the fund manager in one lump sum from the fund assets at the end of the month.

Fund custody fee

Fund custody fee refers to the fee charged by the fund custodian for providing services to the fund, such as the fee drawn by the bank for keeping and disposing of the trust property of the fund. Custody fees are usually drawn according to a certain proportion of the fund's net asset value, usually accumulated daily and paid to the custodian monthly. This fee is also paid from the fund assets and does not need to be charged to investors separately.

Dividend reinvestment fee

Refers to the expenses that investors need to pay to reinvest the expected annualized income of open-end funds in the fund. Dividend reinvestment expenses can be calculated by rate method or quota method; When using the rate method, it should be calculated on the basis of the net asset value of the fund unit, and the rate should not be higher than the subscription rate. Under normal circumstances, dividends are free of charge.

Fund liquidation expenses

Fund liquidation expenses refer to the expenses required for liquidation when the fund is terminated, and are extracted from the fund assets according to the actual expenses incurred during liquidation.

Capital operation fee

The operating expenses of the Fund include payment of CPA fees, attorney fees, annual membership fees, printing and production fees for interim and annual reports, and handling fees for buying and selling securities. These fees and expenses are paid as the operating cost of the fund. Operating expenses account for a small proportion of the net asset value, which is usually determined in advance in the fund contract and paid according to relevant regulations.

Taxes and administrative expenses

Generally speaking, fund taxes include income tax, transaction tax and stamp duty. China has not levied income tax on individual investors' fund dividends and capital gains, and the expected annualized investment income obtained by enterprise investors should be incorporated into the taxable income of enterprises and levied enterprise income tax. In view of the fact that the investment object of this fund is the securities market, the fund manager has paid various tax rates stipulated by the stock exchange when investing, and investors do not need to pay transaction tax when purchasing and redeeming open-end funds.

In order to support the development of open-end funds, the Ministry of Finance and State Taxation Administration of The People's Republic of China have given four preferential tax policies to open-end securities investment funds approved by the China Securities Regulatory Commission in the Notice on Tax Issues Concerning Open-end Securities Investment Funds. These four preferential policies are:

First, before the end of 2003, enterprise income tax and business tax will be temporarily exempted from the difference income of fund managers using funds to buy and sell stocks and bonds;

Second, individual income tax will not be levied on the difference income obtained by individual investors from purchasing and redeeming fund shares until the personal income tax on the difference income from buying and selling stocks is resumed;

Third, when listed companies, bond issuing enterprises and banks pay the above income to the fund, they withhold and pay 20% personal income tax on the stock dividend income, bond interest income and savings deposit interest income obtained by the fund; Personal income tax and enterprise income tax will not be levied on the income obtained by investors (including individual and institutional investors) from fund distribution;

Fourth, stamp duty will not be levied on investors' subscription and redemption of fund shares for the time being.

Other non-transaction expenses

Including account opening fee, transfer registration fee (transfer custody fee) and so on. The account opening fee refers to the fee paid by the investor when opening a fund account; The conversion registration fee (re-custody fee) refers to the fee paid by investors when handling the re-custody business of fund shares between trading accounts of different sales organizations; Account maintenance fee refers to the fee charged by the fund manager to investors for managing and maintaining their fund accounts.

The above fees are charged at a fixed amount. Fund managers can set different fee levels suitable for investors according to certain standards, but the specific treatment methods must be specified in the prospectus.