Securities investment fund refers to a collective investment method that collects the funds of many investors through the sale of fund shares to form independent property, which is managed by fund custodians and fund managers and shares the benefits and risks of securities investment in a combined way. Fund financing is one of the simplest ways for people to manage money. The capital threshold of its investment is not high, and it can be invested in the fund with a general 1000 yuan; The fund adopts the way of collective financial management, turning the "small money" in the hands of investors into the "big money" of the fund, which can make portfolio investment in the securities market and diversify investment risks; The fund entrusts professionals to invest, which saves time and effort compared with direct investment by investors; The fund also has a strict supervision and information disclosure system, which makes the fund investment more standardized and transparent. Investors enjoy the investment income of the fund according to their fund shares, and bear the risk of investment loss at the same time. Funds are different from bank deposits and bonds, and investors may get higher returns or lose their principal.

Since 2006, the fund industry in China has maintained a good momentum of rapid and healthy development, which has brought high returns to investors. In 2006, the fund industry in China made rapid progress. The sustained, steady and high growth of China's economy and corporate profits, abundant liquidity in the economic system, the expansion of the depth and breadth of the securities market, the comparison of the value of investment products in the international scope, and the complete success of the share-trading reform all laid a solid foundation for the development of the securities market in 2006, and the stock market index kept hitting new highs. In 2006, after more than four years of plunge and long decline, the stock market rose strongly and long with a rare trend, and there were six representative indexes in the market. The Shanghai Composite Index, the Shanghai 50 Index, the Shanghai 180 Index, the Shenzhen Composite Index, the Shenzhen 100 Index and the Shanghai and Shenzhen 300 Index increased by 12 1.03% annually.