Extended data:
Fund, in English, refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations. From the accounting point of view, capital is a narrow concept, which refers to funds with specific purposes and uses. The fund we are talking about mainly refers to the securities investment fund.
Whether fund units can be increased or redeemed 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.
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.
According to the different investment risks and returns, it can be divided into growth funds, income funds and balanced funds. According to the different investment objects, it can be divided into four categories: bond funds, stock funds, money funds and hybrid funds.
Principal is the original amount of a loan, deposit or investment before interest is calculated. As a whole, the principal of an enterprise (including fixed capital and working capital) is simultaneous, and it is spatially juxtaposed at different stages, showing different forms of principal occupation. Every professional form of principals is constantly changing from the last stage to the next stage, and from one form to another.
Principal requires financial institutions not only to implement the policy of "developing economy and ensuring supply" to ensure the capital needs of enterprises' production and operation and foreign investment activities, but also to practise economy, rationally allocate principal and give full play to the regulatory role of finance in production and operation and foreign investment activities. So as to make full use of monetary resources and comprehensively improve the economic benefits of enterprises.