Compared with the two, there are the following differences:
(1) The status of investors is different. Stock holders are shareholders of the company and have the right to express their opinions on the company's major decisions; bond holders are creditors of the bond issuer and have the right to recover principal and interest when due: fund unit holders are the fund's of beneficiaries. It reflects a trust relationship.
(2) The degree of risk is different. Generally speaking, stocks are riskier than funds. For small and medium-sized investors, due to the limitation of the total amount of disposable assets, they can only directly invest in a few stocks. This violates the investment taboo of "putting all eggs in one basket". When stocks fall due to stock market declines or corporate financial conditions deteriorate, capital may disappear: the basic principle of funds is portfolio investment, diversification of risks, and investing funds in different proportions in securities of the same period and different types. , to minimize risks. Under normal circumstances, the principal of bonds is guaranteed, and the returns are relatively less risky than bonds.
(3) The income situation is different. The returns on funds and stocks are uncertain, while the returns on bonds are certain. Generally speaking, fund returns are higher than bonds. Taking U.S. investment funds as an example, the income growth of 25 types of funds including the International Investor Fund in the five years from 1976 to 1981 was 301.6% on average. Among them, the highest was 465% for the 20th Century Growth Investor Fund, and the lowest was Jinli Tren. The German fund's interest rate was 243%; while the interest rates of the 5-year government bonds issued domestically in 1996 were only 13.06% and 8.8% respectively.
(4) Different investment methods. Different from investors in stocks and bonds, securities investment funds are an indirect form of securities investment. Fund investors no longer directly participate in the buying and selling activities of securities, and no longer directly bear investment risks. Instead, experts are responsible for the specific investment. Determination of direction and selection of investment objects.
(5) Different price orientations. When the macro-political and economic environment is consistent, the price of a fund is mainly determined by the net asset value; the main factor affecting bond prices is interest rates; and the price of stocks is greatly affected by the relationship between supply and demand.
(6) Investment recovery methods are different. Bond investment has a certain period, and the principal will be recovered after the expiration; stock investment has an unlimited period. Unless the company goes bankrupt or enters liquidation, investors are not allowed to withdraw their investment from the company. If they want to withdraw it, they can only withdraw it according to the market price on the securities exchange market. Price realization; investment funds vary depending on the form of the fund they hold: closed-end funds have a certain period. After the period expires, investors can distribute the corresponding remaining assets according to the shares they hold. During the closed period, they can also be liquidated on the trading market; open-end funds generally have no time limit, but investors can request redemption from the fund manager at any time.