1. Securities investment funds raise funds to invest in securities by raising funds. The main way to raise funds is to issue fund bonds to investors, and collect a small amount of funds scattered in the hands of many investors into a large amount of funds to invest in valuable securities assets such as stocks and bonds.
2. Securities investment funds invest in securities trusts in a trust relationship, which is an act of entrusting my property to a trusted third party, which will manage and use it according to my requirements. Investors entrust professional institutions to invest in securities, and professional institutions manage and invest according to the requirements of investors, and distribute the proceeds to investors. Obviously, this is an act of trust.
3. Securities investment fund is an indirect way of securities investment. After investors buy fund shares, the fund invests in the securities market with its own assets. Obviously, investors' investment in securities is indirect. Therefore, investors cannot participate in the decision-making and management of companies that issue securities.
What are the characteristics of securities investment funds?
1. Securities investment fund is a collective investment system.
Securities investment fund is a comprehensive portfolio investment method, which gathers a large amount of investors' funds and establishes investment management companies for professional management and operation. Under this system, the operation of funds is subject to multiple supervision.
2. Securities investment fund is a kind of trust investment.
Like the general financial trust relationship, it mainly has three related parties: the principal, the trustee and the beneficiary. Among them, there is a trust deed between the trustee and the principal. However, as a financial trust business, securities funds have their own characteristics. If there is an indispensable custodian among the main parties engaged in securities investment, it cannot be the same institution as the trustee (fund management company), and the fund custodian is generally a legal person; Fund managers will not use each investor's funds separately, but will combine them into a huge capital chain for later operation.
3. Securities investment fund is a kind of financial intermediary.
It exists among investors, and through specialized institutions, investors' funds are converted into financial assets and reinvested in financial markets, thus realizing the appreciation of monetary assets. Securities investment fund managers are responsible for the operation and management of funds invested by investors, and must determine the investment direction of funds according to the requirements of contracts (or contracts) to ensure the safety and maximum income of capital investors.
Legal basis:
People's Republic of China (PRC) Securities Investment Fund Law
Article 1 This Law is formulated for the purpose of regulating the activities of securities investment funds, protecting the legitimate rights and interests of investors and relevant parties, and promoting the healthy development of securities investment funds and capital markets.
Article 2 This Law is applicable to securities investment funds (hereinafter referred to as funds) established in People's Republic of China (PRC) through public offering or private placement, which are managed by fund managers and managed by fund custodians, and conduct securities investment activities for the benefit of fund share holders; Where there are no provisions in this Law, the provisions of People's Republic of China (PRC) Trust Law, People's Republic of China (PRC) Securities Law and other relevant laws and administrative regulations shall apply.