Conceptual nature
(1) Stock is the ownership certificate of a joint-stock company, and it is a kind of valuable securities issued by a joint-stock company to all shareholders, as a holding certificate for raising funds and distributing dividends and bonuses according to regulations.
(2) The fund is actually a trust relationship. When investors buy funds, it is equivalent to entrusting fund management companies to trust funds, and fund managers manage funds and make financial investments such as stocks and bonds. Fund holders enjoy the benefits and bear the risks.
Investor status
(1) Stock investors are shareholders of joint-stock companies. Controlling shareholders and major shareholders can influence the company's major decisions. Small and medium shareholders have no control right and cannot influence the company's decision-making.
(2) Due to the differences between corporate funds and contract funds, the status of fund investors is also different. Investors of company funds are shareholders of the company and have the right to attend the shareholders' meeting and express their opinions on the company's decisions. Contractual fund is a kind of trust relationship, and investors, as the parties to the contract, are beneficiaries, which cannot directly affect the investment behavior of fund managers.
Risk degree
Generally speaking, stock investment risk is higher than fund investment risk. The reason for this is the following：
(1) Most small and medium-sized investors have not received professional financial training, and their professional knowledge and skills are insufficient; Fund managers have received systematic financial studies, and their professional skills and investment literacy are relatively high. Therefore, the risk of entrusting funds to fund managers is low.
(2) Limited by the amount of funds, small and medium-sized investors can only invest in a small number of stocks, which cannot effectively spread risks. The fund brings together a large number of investors' funds, which can be widely allocated and effectively spread risks.
(3) Fund managers can not only invest in stocks, but also invest in products with low risk such as bonds, so the risk is lower than that of investing in stocks alone.
transaction cost
(1) Stock trading expenses include stamp duty, commission and transfer fees.
(2) The transaction expenses of the Fund include subscription fee, management fee, custody fee and redemption fee.