investment fund

General funds mainly invest in large-cap blue-chip stocks, and when calculating the Shanghai Composite Index, large-cap blue-chip stocks also account for a great weight, so the decline and rise of funds are generally related to the decline and rise of the Shanghai Composite Index.

However, it is different for different funds. Some funds are closely related to the Shanghai Composite Index, others are irrelevant, and even some funds can rise when the market falls, depending on what stocks the fund holds.

fund

Investment funds originated in Britain, but prevailed in the United States. After the First World War, the United States replaced Britain as the new hegemon of the world economy, and jumped from a capital importing country to a capital exporting country. With the rapid growth of American economy, the increasingly complex economic activities make it more and more difficult for some investors to judge the economic trend. In order to effectively promote foreign trade and foreign investment, the United States began to introduce the investment trust fund system. 1926 The Massachusetts Financial Services Company in Boston established the Massachusetts Investment Trust Company, which became the first modern mutual fund in the United States. In the following years, the fund experienced its first glorious period in the United States. By the end of the 1920s, the total assets of all closed-end funds had reached $2.8 billion, while the total assets of open-end funds were only $6,543.8+$400 million, but the growth rate of the latter was higher than that of closed-end funds. In the 1920s, the total asset value increased by more than 20% every year, and the growth rate of 1927 exceeded 100%. However, just as American investors were immersed in the optimism of "eternal prosperity", the global stock market crash of 1929 dealt a heavy blow to the newly emerging American fund industry. With the global economic downturn, most investment companies have closed down, and the rest are unsustainable. But in comparison, the loss of closed-end funds is greater than that of open-end funds. The financial crisis reduced the total assets of American investment funds by about 50%. Since then, the securities industry has been at a low ebb throughout the 1930s. Faced with the shortage of funds and low industrial productivity caused by the Great Depression, people lost confidence in investment, and with the outbreak of the Second World War, the investment fund industry once stopped.

After the crisis, in order to protect the interests of investors, the U.S. government enacted the securities law of 1933 and the securities trading law of 1934, followed by the investment company law of 1940 and the investment consultant law specifically for investment funds. The Investment Company Law specifies the legal elements of the composition and management of investment funds in detail, which provides investors with complete legal protection and lays a good legal foundation for the rapid development of investment funds in the future.

After World War II, the American economy resumed its strong growth momentum and investor confidence quickly recovered. Under the strict legal protection of investment funds, especially open-end funds are active again, and the fund scale is increasing year by year. Since 1970s, American investment funds have exploded. From 1974 to 13 of 1987, the scale of investment funds increased from $64 billion to $700 billion. At the same time, the American fund industry has also broken through the restriction of investing only in common stock and corporate bonds for more than half a century, and launched money market funds and Federal Reserve funds at 197 1; Municipal bond funds and long-term bond funds began to appear in1977; The tax-free money fund first appeared in1979; International bond fund launched 1986. By the end of 1987, there were more than 2,000 different funds in the United States, which were held by nearly 25 million people. Due to the variety of investment funds, the investment focus of various funds is scattered. During the 1987 stock market crash, the total assets of American investment funds not only did not decrease, but increased in number.

In the early 1990s, about 80% of the new capital injected into American stock market came from funds, and the ratio of 1992 reached 96%. From 1988 to 1992, the proportion of investment funds in the entire US stock market rose sharply from 5% to 35%. By 1993, in NYSE, individual investment only accounts for 20% of the stock market value, while funds account for 55%. By the end of 1997, there were about $7.5 trillion in fund assets in the world, including about $4 trillion in American funds, which exceeded the total savings deposits of American commercial banks. From 1990 to 1996, the growth rate of investment funds is 2 18%. During this period, more and more institutional investors with huge capital, including bank trust departments, trust companies, insurance companies, pension funds and various consortia or foundations, began to invest heavily in investment funds. At present, America has become the most developed country in the fund industry in the world.