A fund in a broad sense refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations. In a narrow sense, funds refer to funds with specific purposes and uses. The daily fund mainly refers to the securities investment fund.
According to different standards, securities investment funds can be divided into different types: according to whether the fund share can be increased or redeemed, it can be divided into open-end funds and closed-end funds. Open-end funds are not listed and traded, 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.
Securities investment fund (referred to as fund for short) refers to a collective investment model that collects the funds of many investors to form independent property by selling fund shares, and is managed by fund custodians (such as banks) and fund managers, and shares the benefits and risks of securities investment in the form of portfolio. According to the different ways of raising funds, it can be divided into public raising funds and non-public raising funds. Generally speaking, the starting point of Public Offering of Fund is relatively low (generally 1 000 yuan), and it generally holds more than 20 stocks, which can meet the needs of small and medium-sized investors to allocate multiple stocks in a decentralized manner and "not put their eggs in one basket".
Fund refers to a way of centralized management of a certain amount of funds. According to different risks and returns, funds are divided into money funds, bond funds and stock funds. There are two main ways to make a profit:
1, net value growth: buying a fund mainly means buying a basket of stocks, and the net value of the fund represents the profit and loss of stocks. The growth of net worth naturally brings the income of investment.
2. Dividend: According to the national laws and regulations and the provisions of the fund contract, the Foundation distributes the income regularly. Dividends received by investors are also an integral part of profits.
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.