Securities investment fund refers to a collective investment method that collects the funds of many investors through the sale of fund shares to form independent property, which is managed by fund custodians and fund managers and shares the benefits and risks of securities investment in a combined way. Today, Bian Xiao will share with you the introductory knowledge of fund types for your reference only!

1. What is a securities investment fund?

Securities investment fund refers to a collective investment method that collects the funds of many investors through the sale of fund shares to form independent property, which is managed by fund custodians and fund managers and shares the benefits and risks of securities investment in a combined way. Simply put, investors give money to fund management companies, and fund managers raise funds for investment. Investors only need to regularly observe the fund's net performance.

2. What's the difference between securities investment funds and stocks?

Securities investment fund is a kind of investment income certificate. Stock is a stock issued by a joint stock limited company to investors when raising capital. There is a difference between the two:

1) reflects different relationships.

Stocks reflect ownership relations, while securities investment funds reflect trust relations.

2) Different operational inputs.

Stock is a financing tool, and the funds raised are mainly invested in industry, which is a direct investment method. Securities investment fund is a kind of trust tool, and its raised funds are mainly invested in securities, which is an indirect investment method.

3) Risks and benefits are different.

The return of stocks is uncertain, and its return depends on the operating efficiency of the issuing company, so investing in stocks is risky. Securities investment funds adopt portfolio investment, which can spread risks to a certain extent, with smaller risks and more stable returns than stocks.

4) Different ways of investment recovery.

Stocks have no expiration date, so stock investors can't ask for withdrawal, and investors can only sell them in the secondary market if they want to realize their cash. Investors of open-end funds can redeem their fund shares according to their net assets, while investors of closed-end funds are not allowed to redeem their fund shares during the fund's existence. If they want to cash in, they can only sell it on the exchange or OTC market, but investors can get a discount on the investment principal when the duration expires.

3. What is an open-end fund?

Open-end fund refers to a fund operation mode that the fund share is not fixed and can be purchased and redeemed at the time and place agreed in the fund contract. Because investors can freely join or withdraw from this open-end investment fund, and there is no limit on the number of investors, it is also called * * * mutual fund. Most investment funds are open.

4. What is a closed-end fund?

Closed-end fund refers to a fund operation mode in which the fund share is fixed within the term of the fund contract, and the fund share can be traded on a legally established stock exchange, but the fund share holder may not apply for redemption. Fund shares are traded on the stock exchange, and their prices are determined by market supply and demand.

5. What's the difference between open-end funds and closed-end funds?

1) The variability of fund size is different.

The fund shares issued by open-end funds are redeemable, and investors can subscribe for the fund shares at any time, so the size of the fund is not fixed; The scale of closed-end funds is fixed.

2) The transaction prices of fund units are different.

The buying and selling price of fund units of open-end funds is based on the net asset value corresponding to the fund units, and there will be no discount. The price of closed-end fund shares will be more affected by the relationship between market supply and demand, and the price fluctuates greatly.

3) There are different ways to buy and sell fund shares.

Investors of open-end funds can buy or redeem funds directly from fund management companies at any time, with low handling fees and no income tax. The trading of closed-end funds is similar to stock trading, which can be traded in the securities market and requires the payment of handling fees and securities transaction tax. Generally speaking, the cost is higher than that of open-end funds.

4) Different investment strategies.

Open-end funds must keep a certain amount of cash in order to cope with the redemption of investors at any time, and the management requirements should be higher. However, closed-end funds cannot be redeemed, so they can make full use of funds and make long-term investments, and there is no requirement for liquidity management of funds.

5) The required market conditions are different.

Open-end funds are flexible and easy to scale, which is suitable for funds with high degree of openness. A larger financial market; On the contrary, closed-end funds are not perfect for the financial system. Less open and smaller financial markets

6. What is an enterprise fund?

Corporate investment fund refers to an investment institution established in accordance with the Company Law, aiming at making profits and investing concentrated capital in various securities through issuing stocks. Corporate investment funds are similar to joint-stock companies in organizational structure. At present, there is no such fund in China.

7. What is a contractual fund?

Contractual investment fund, also known as trust investment fund, is another organizational form of the fund, which was established according to the beneficiary certificate issued by trust deed. At present, domestic funds are all contractual funds.

8. What is a stock fund?

Equity fund is the most important type of fund, with stocks as the main investment target, including preferred stock and common stock. According to the Measures for the Operation and Management of Securities Investment Funds, a fund that invests more than 60% of its assets in stocks is called a stock fund. The main function of stock funds is to pool the small amount of funds of mass investors and invest in different stock portfolios, with the investment goal focusing on the pursuit of long-term capital appreciation.

9. What is a bond fund?

Bond funds mainly invest in bonds, including government bonds, corporate bonds and convertible bonds. According to the Measures for the Operation and Management of Securities Investment Funds, more than 80% of the fund assets are invested in bonds. The subscription and redemption costs of bond funds are low, which is suitable for investors who want to obtain stable income. Bond funds are basically income-oriented investment funds, which generally pay dividends regularly, with the characteristics of low risk and stable income.

10. What is a hybrid fund?

According to the Measures for the Operation and Management of Securities Investment Funds, funds that invest in stocks, bonds and money market instruments, but the ratio of stock investment to bond investment does not meet the requirements of stock funds and bond funds, are mixed funds. Because hybrid funds invest in stocks and bonds at the same time, they can achieve a balance between income and risk by investing in different asset classes.

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