2. Broadly speaking, funds are the collective name of institutional investors, including trust and investment funds, unit trust funds, provident funds, insurance funds, retirement funds and funds of various foundations. Funds in the existing securities market, including closed-end funds and open-end funds, have the characteristics of income function and value-added potential.
3. From the accounting point of view, funds refer to funds with specific purposes and uses. Because the investors of government agencies and institutions do not require investment returns and investment recovery, but require funds to be used for designated purposes in accordance with the law or the wishes of the investors, funds are formed.
1. Definition
The funds we are talking about now usually refer to securities investment funds.
Securities investment fund 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 benefits.
2. Type
Operation mode
The operation mode of trust fund funds is mainly loans, with less equity investment and a shrinking trend. Even in the only equity investment projects, trust companies basically do not participate in the specific operation and management of the target company, and take various control measures, such as sending directors, appointing financial directors, and amending the company's articles of association. , in order to prevent financial risks.
The end of the equity investment project mainly depends on the third party to buy back the equity, and the dividend and liquidation of the target company have basically never happened, and it is impossible to wait until the IPO. This kind of equity repurchase investment belongs to debt financing in disguised form. Equity investment is rare because it has fatal defects, that is, in the short term (1-2 years), there is great uncertainty in the future third-party repurchase, and the exit channel is not smooth and the risk is high, so trust companies are no longer willing to adopt it.
3. Trust period
The trust period is short, basically 1-2 years. In fact, China residents are not short of long-term funds, and they have considerable savings for pension, children's education and marriage. However, the main reasons for the short trust period are: investors expect short-term gains and have doubts about long-term financial management; The financial management ability and brand of trust companies are still unconvincing to investors. Due to the limitation of the number of trust contracts, trust companies have to find corporate institutional clients in order to raise sufficient funds, and the funds of corporate institutional clients are often short-term. Although China's social security fund Council and other large institutions have long-term funds, they can't buy trust funds at present. In addition, loan trusts cannot be developed into long-term financial management varieties.