The foundation collects a certain percentage of fees as the income and expenses of the fund manager. What is your evaluation of this answer? As the money of the fund, they will not speculate. I know that this money is mainly used for various social welfare and infrastructure construction, because the source of funds is partly the government's appropriation for the project and partly self-financing, and the source of self-financing is to borrow money from the bank and pay interest. This is of course the so-called usury, but it is different from usury. The faster the bank takes back the lent money and returns it to the individual, the higher the return. Simply put, banks are like middlemen. They lend your money to others and share the profits.
For example, if an investor buys a stock fund, the fund manager will invest at least 80% of the fund assets in stocks. The gains shall be shared by the investment fund share holders, and the investment losses shall be shared.
If they buy money funds or bond funds, they will invest all their fund assets in money market instruments, short-term bonds and government bonds.
Different types of funds have different risk coefficients, so investors should buy funds according to their risk tolerance. The order of risk is: money fund. Of course, fund companies will not manage investors' funds for free, but will charge a certain percentage of management fees according to the length of time investors hold funds.
According to different standards, securities investment funds can be divided into different types:
(1) 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 traded on the market (as the case may be), 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 stock exchanges. Investors buy and sell fund shares through the secondary market.
(2) According to different organizational forms, it can be divided into corporate funds and contractual funds. Funds set up investment fund companies by issuing fund shares, usually called corporate funds; Fund managers, fund custodians and investors sign fund contracts, which are usually called contractual funds. China's securities investment funds are contractual funds.
(3) According to the different investment risks and returns, it can be divided into growth funds, income funds and balanced funds.
(4) According to different investors, it can be divided into four categories: money fund, bond fund, mixed fund and stock fund.