What is a fund?
A fund in a broad sense refers to a certain amount of funds set up for a specific purpose, which generally comes from the funds invested by fund investors. But in a narrow sense, funds refer to funds with certain purposes and uses, and organizations and individuals are not allowed to use them. The representative of this fund is the Provident Fund. However, it should be noted that investors need to choose and match the investment of funds according to their own actual situation, and choose the most suitable fund type for individuals. In addition, it is very unscientific for investors to judge the whole fund according to the short-term fund ups and downs. For the investigation of a fund, we should look at its ups and downs for a long time.
Classification of funds:
According to different standards, securities investment funds can be divided into different types:
(1) According to whether the fund unit 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 the stock exchange. 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. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all 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 investment objects, it can be divided into stock funds, bond funds, money market funds and futures funds.