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What does equity investment fund mean?
Equity investment fund is a kind of investment fund funded by investors, which aims to buy the equity of different companies. The fund manager will look for potential investment opportunities to gain income, and sell the equity of the fund after the investment period to realize the return on investment. Usually these funds are managed by professional investment institutions, and investors need certain investment experience and financial strength to participate.

Equity investment funds can be divided into two types: infrastructure and growth. Infrastructure funds usually invest in infrastructure fields such as energy, communication and transportation. These capital-intensive industries need a lot of long-term funds to promote innovation and development. Growth funds pays attention to productivity and technological innovation, such as high-tech enterprises, life sciences and publishing industry.

Equity investment funds have the potential of high risks and high returns. On the one hand, investors can get the opportunity of non-public trading by buying private equity, thus obtaining higher returns. On the other hand, fund investment will also bring high risks, including enterprise closure, market risk, bad debts and asset management. Therefore, it is very important for investors who want to gain profits from equity investment funds to choose professional fund management institutions and strict risk management procedures.