What people usually call funds is securities investment funds.

The concept of funds can be roughly explained with an example: there are a number of people a, b, and c who want to invest and have idle funds but no professional investment knowledge. If they directly enter the stock market, they are likely to lose money; if they learn to invest by themselves

, it’s late again.

There is such a professional who has studied investment for many years and has a lot of successful experience, but does not have enough funds.

Imagine that if abc and d reach an agreement, abc will invest and d will invest on its behalf. The money earned will be distributed in proportion to the amount of abc's investment. The losses will also be borne by abc in accordance with this proportion, and d will only receive a commission from it.

Since d’s investment range is very wide, involving both the stock and bond markets, and since abc’s expected investment types are different, d has designed three plans. One is to focus on stocks, with high returns and high risks; the second is to focus on stocks.

Mainly bonds, with small returns and low risks; third, a mixture of stocks and bonds, with moderate risks and returns.

abc can choose from these three options based on its own investment preferences, bear corresponding risks, and obtain corresponding returns.

In this example, abc is the fund holder, d is equivalent to the fund company, and the three plans designed by d are different fund products, commonly known as funds.