The amortized cost method means that the appraised object is listed at the purchase cost, and is evenly amortized at the coupon rate or agreed interest rate during the remaining period, taking into account the premium and discount at the time of purchase, and the income is accrued daily. Bond funds, also known as bond funds, refer to funds that specialize in investing in bonds. By pooling the funds of many investors, it makes portfolio investment in bonds and seeks relatively stable returns. Bonds are creditor's rights and debt certificates issued to investors when the government, financial institutions, industrial and commercial enterprises and other institutions directly borrow money from the society to raise funds, and promise to pay interest at a certain interest rate and repay the principal according to the agreed conditions.
Funds have broad and narrow definitions. Broadly speaking, it refers to a certain amount of funds set up for a certain purpose, such as trust and investment funds, provident funds, retirement funds, etc. In a narrow sense, it refers to funds with specific purposes and uses. Usually, funds mainly refer to securities investment funds. The income of securities investment funds comes from the future, and the performance of the income is inseparable from the performance of the investment target market, which has certain risks.
According to different standards, securities investment funds can be divided into different types:
First, according to whether fund units can be increased or redeemed, they are 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.
Two, according to the different organizational forms, can be divided into enterprise funds and contract 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.
Three, according to the different investment risks and benefits, can be divided into growth, income and balanced funds.
Four, according to the different investment objects, can be divided into stock funds, bond funds, money market funds, futures funds, etc.