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Reasons for the rapid development of China's fund industry
The reasons for the rapid development of the fund industry in China are as follows:

1. The performance of the fund is excellent, the service is perfect, the fund market is more perfect, and the people's desire to buy is enhanced.

2. Fund management companies have sufficient fund assets and will not hold a large number of assets that are difficult to realize, which is more convenient and safer for the public and has a strong willingness to choose.

3. High transparency and low investment risk. The announcement of the fund's net asset value accurately reflects the fund manager's ability to operate and control the fund at any time in the market, giving citizens more sense of security and greatly enhancing their willingness to choose.

1. What is a fund?

A fund in a broad sense refers to a certain amount of funds set up for a certain purpose, mainly including trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations. In a narrow sense, funds refer to funds with specific purposes and uses. In practice, funds mainly refer to securities investment funds.

Second, the classification of funds:

(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.