First of all, a securities company refers to a financial institution engaged in the trading of stocks, bonds and other securities markets. They usually provide all kinds of financial products, from stocks and bonds to money markets and foreign exchange. The main functions of securities companies are to provide customers with securities trading services, investment consulting, securities custody, IPO issuance and other services.
A fund company refers to a financial institution specializing in fund management and operation. The main functions of the fund are asset allocation and risk diversification. The main functions of fund companies are to manage various fund products for customers, formulate fund investment strategies, raise funds, adjust and liquidate funds, etc. Fund companies will establish different types of funds (such as money market funds, bond funds, stock funds, etc.). ) Allocate and manage assets according to different fund characteristics and risk levels.
From the above basic concepts, securities companies and fund companies are not the same kind of institutions. Securities companies mainly provide securities trading services for investors, and fund companies mainly provide fund asset allocation and management services for customers.
But it should also be pointed out that some securities companies also have their own fund companies. For example, China Merchants Fund under China Merchants Securities and Ping An Fund under Ping An Securities. At this time, the functions of securities companies are not limited to securities trading, but also include fund investment and management. Therefore, simply from the name of the institution, securities companies and fund companies are different, but they may overlap according to different situations.
Finally, it should be pointed out that both securities companies and fund companies are closely supervised financial institutions. When choosing securities companies and fund companies, we should carefully understand their service scope, product types, supervision and investment risks, so as to make more accurate choices.
To sum up, securities companies and fund companies are two relatively independent concepts. Except some securities companies set up their own fund companies, they are not a kind of institutions. Therefore, when choosing securities or fund investment, it is necessary to carefully understand the specific situation of relevant institutions to avoid wrong choice.