Classification of Funds Investment funds can be divided into different categories based on different criteria.

1. Investment funds can be divided into open-end funds and closed-end funds according to whether fund units can be added or redeemed.

An open-end fund refers to an investment fund in which investors can subscribe or redeem fund units at any time after the fund is established, and the fund size is not fixed; a closed-end fund refers to an investment fund whose size is determined before issuance and within the specified period after the issuance is completed.

An investment fund with a fixed fund size.

2. According to different organizational forms, investment funds can be divided into corporate investment funds and contract investment funds.

Corporate investment funds are investment funds in which investors with different investment objectives form a profit-oriented joint-stock investment company and invest assets in specific objects; contract investment funds, also called trust investment funds, refer to funds

An investment fund formed by the sponsor issuing fund units based on the fund contract entered into between the sponsor and the fund manager and fund custodian.

3. According to the differences in investment risks and returns, investment funds can be divided into growth investment funds, income investment funds and balanced investment funds.

Growth investment funds refer to investment funds that pursue the long-term growth of capital as their investment purpose; income funds refer to investment funds that aim to bring high levels of current income to investors; balanced investment funds refer to investment funds that aim to bring high levels of current income to investors.

An investment fund whose purpose is to pay current income and pursue long-term growth of capital.

4. According to different investment objects, investment funds can be divided into stock funds, bond funds, money market funds, futures funds, option funds, index funds and warrant funds, etc.

Stock funds refer to investment funds that invest in stocks; bond funds refer to investment funds that invest in bonds; money market funds refer to short-term money market funds such as treasury bills, large bank negotiable certificates of deposit, commercial papers, corporate bonds, etc.

Investment funds that invest in marketable securities: Futures funds refer to investment funds whose main investment objects are various types of futures; option funds refer to investment funds that invest in stock options that can distribute dividends: Index funds refer to investment funds that invest in various types of futures.

An investment fund whose investment object is the price index of a certain securities market; a warrant fund refers to an investment fund whose investment object is warrants.

5. According to the type of investment currency, investment funds can be divided into US dollar funds, Japanese yen funds, Euro funds, etc.

USD funds refer to investment funds that invest in the US dollar market; Japanese yen funds refer to investment funds that invest in the Japanese yen market; Euro funds refer to investment funds that invest in the Euro market.

also.

According to the different sources of capital and application areas, investment funds can be divided into international funds, overseas funds, domestic funds, national funds and regional funds, etc. International funds refer to investment funds whose capital comes from domestic sources and invests in foreign markets; overseas funds

Also called offshore funds.

It refers to investment funds whose capital comes from abroad and invests in foreign markets; Domestic funds refer to investment funds whose capital comes from domestic sources and invests in the domestic market; national funds refer to capital which comes from abroad and invests in a specific

National investment funds; regional funds refer to investment funds that invest in a specific region.

The role of funds The role of securities investment funds 1. Funds broaden investment channels for small and medium-sized investors. For small and medium-sized investors, it is safer to deposit or buy bonds, but the yield is lower; investing in stocks may obtain higher returns, but

The risk is greater.

As a new type of investment tool, securities investment funds bring together small amounts of funds from many investors for portfolio investment. They are managed and operated by experts. They have stable operations and considerable returns. It can be said to be an indirect investment specially designed for small and medium-sized investors.

Tools have greatly broadened the investment channels for small and medium-sized investors.

, it can be said that funds have entered the homes of ordinary people and become a popular investment tool.

2. Funds have effectively promoted industrial development and economic growth by converting savings into investments. Funds absorb idle funds from society and create a good financing environment for companies to raise funds in the securities market. They actually transform savings funds.

for the role of production funds.

This mechanism of converting savings into investment provides an important source of funds for industrial development and economic growth. Moreover, as the fund develops and grows, this role will become increasingly important.

3. Conducive to the stability and development of the securities market. First, the development of funds is conducive to the stability of the securities market.

The stability of the securities market is closely related to the investor structure of the market.

The emergence and development of funds can effectively improve the investor structure of the securities market and become the backbone of stabilizing the market.

The fund is operated and managed by professional investors who have rich investment experience, complete information and materials, advanced analysis methods, relatively rational investment behavior, and can objectively stabilize the market.

At the same time, funds generally focus on the long-term growth of capital, adopt more long-term investment behaviors, and are less frequently in and out of the securities market, which can reduce the volatility of the securities market.

Second, as a financial instrument that mainly invests in securities, the emergence and development of funds have increased the investment varieties of the securities market, expanded the transaction scale of the securities market, and played a role in enriching and activating the securities market.

As the fund develops and grows, it has become an important driving force for the development of the securities market.