1. Securities investment funds and stocks

Securities investment funds are a kind of investment beneficiary certificates. Stock is a share certificate issued by a joint stock limited company to investors when raising capital. There is an essential difference between the two.

1. The relationship reflected is different. Stocks reflect ownership relations, while securities investment funds reflect trust relations.

2. Different investment in operation. Stock is a financing tool, and its fund-raising is mainly invested in industry, which is a direct investment method < P >. The securities investment fund is a trust tool, and its fund-raising is mainly invested in securities, which is an indirect investment method.

3. The risks and benefits are different. The return of stocks is uncertain, and its return depends on the operating efficiency of the issuing company < P >, so investing in stocks is risky. Securities investment funds adopt portfolio investment, which can disperse risks to a certain extent, with risks < P > less than those of stocks and stable returns.

4. The ways of investment recovery are different. Stock has no expiration date, so stock investors can't ask for withdrawal. If investors want to cash in, they can only sell it in the secondary market. Investors of open-end funds can redeem the fund units according to their net asset values, while investors of closed < P > funds are not allowed to redeem the fund units during the duration of the fund. If they want to realize it, they can only sell it on the exchange or over-the-counter < P > market, but investors can get the concession of the investment principal at the expiration of the duration.

ii. securities investment funds and bonds

bonds are creditor's rights and debt certificates issued directly to investors by the government, financial institutions, industrial and commercial enterprises and other institutions, and promise to pay interest at a certain interest rate and repay the principal according to the agreed conditions. The differences between securities investment funds and bonds are shown in the following aspects:

1. Bonds reflect the relationship between creditor's rights and debts, while securities investment funds reflect the trust relationship.

2. The investment of funds is different. Bond is a financing tool, and its fund-raising is mainly invested in industry, which is a direct investment method < P >. The securities investment fund is a trust tool, and its fund-raising is mainly invested in securities, which is an indirect investment method.

3. Risks and benefits are different. The income of bonds is generally determined in advance, and its investment risk is small. Securities investment funds

have higher investment risks and higher returns than bonds. The risk and return of securities investment funds are higher than those of bonds and smaller than those of stocks < P >.

iii. securities investment funds and Venture Capital funds

venture capital funds, also known as venture capital, are institutions that finance funds to support those promising emerging

industries, and their business policy is to pursue high returns in high risks. Its investment targets are mainly those small enterprises and emerging enterprises that

are not qualified for listing, and even those enterprises that are still in the process of conception.

The main differences between securities investment funds and venture capital funds are as follows:

1. Different investment objects. The investment objects of securities investment funds are mainly listed stocks and bonds, while the investment objects of risk < P > investment funds are unlisted emerging small and medium-sized enterprises, especially emerging high-tech enterprises.

in the United States, about 8% of venture capital funds are invested in high-tech enterprises in the start-up period.

2. Risks and benefits are different. Securities investment funds adopt portfolio investment in negotiable securities, with less risk and stable returns. Venture capital fund is famous for its high risk and high return. It usually takes 4-6 years to recover its investment, and there is usually no < P > income during this period. Once it fails, it will be wiped out, but if it succeeds, it will get rich returns.

3. Different ways of raising funds. Securities investment funds are generally publicly offered and traded, with good liquidity; Venture capital funds

generally raise funds by private placement, that is, raise funds from specific investment groups.

iv. Securities investment funds and hedge funds

Hedge funds are called hedge funds in English, which means "funds with hedging risks". The original intention is to use financial derivatives such as futures and

options to buy and sell related stocks. The operation of risk hedging can

avoid and dissolve the risk of securities investment to a certain extent.

after decades of evolution, hedge funds have become synonymous with a new investment model, that is, an investment model based on the latest investment theory, using extremely complicated financial market operation skills, and making full use of the leverage effect of various financial derivatives to undertake high risks and pursue high returns.

The differences between securities investment funds and hedge funds are as follows:

1. Securities investment funds are generally raised publicly, and most of them are small and medium investors. Because of its high-risk and complicated investment mechanism, most hedge funds conduct private placement, and many countries prohibit them from publicly recruiting funds from the public. Generally, they adopt the

partner system, and partners provide most of the funds but do not participate in investment activities; Generally, the number of partners is controlled below 1, so as to

ensure its high concealment and flexibility in operation. Fund managers join in with capital and investment skills, and are responsible for the investment decision of the fund.

2. The requirements for information disclosure are different. All countries have strict requirements on information disclosure of securities investment funds to protect the interests of small and medium investors. Because hedge funds are mostly private, they evade the strict < P > requirements of the law on information disclosure in Public Offering of Fund.

3. Management operates in different ways. The management and operation of securities investment funds are relatively transparent and stable. Generally, there is a clear definition of

portfolio, that is, there is a definite plan in the selection and proportion of investment tools, and credit funds are not allowed to invest in

banks. Hedge funds have no restrictions in these aspects at all, and can use all operational financial instruments and combinations to maximize the use of credit funds and obtain excess returns. The management and operation of hedge funds are highly concealed, flexible and leveraged. Therefore, securities investment funds are more investment-oriented while hedge funds are more speculative.