National debt is a bond issued by the state, a government bond issued by the central government to raise financial funds, and a debt certificate issued by the central government to investors, which promises to repay the principal and interest within a certain period of time. Because the issuer of national debt is the country, it has the highest credit and is recognized as the safest investment tool.
National debt is the main form of national credit. The central government often issues treasury bonds to make up the national fiscal deficit, or to raise funds for some expensive construction projects, some special economic policies and even wars. Because the national debt takes the tax revenue of the central government as the guarantee of repayment of principal and interest, it has low risk, strong liquidity and lower interest rate than other bonds.
China's national debt refers to the national debt issued by the Ministry of Finance on behalf of the central government. Guaranteed by the national financial reputation, the credibility is extremely high. It has always been called "Phnom Penh bond", and cautious investors like to invest in government bonds. There are three kinds of bonds: voucher bonds, physical bonds and book-entry bonds.
Many people don't know what a fund is. I try to explain what a fund is in common language.
Suppose you have a sum of money and want to invest in bonds, stocks and other securities to increase the value, but you have no energy, no professional knowledge and not much money, so you want to invest in partnership with other people 10 and hire an investment expert to operate the assets invested by everyone to increase the value. However, if investors above 10 negotiate with investment experts at any time, they will be at a loss, so they will choose a person who knows the most about it to take the lead. Give him a certain percentage of each person's assets regularly, and he will pay the service fee to the master on his behalf. Of course, he took the lead in making various arrangements, including running errands from door to door, reminding experts of risks at any time, and regularly announcing investment profits and losses to everyone. , so it's not for nothing, and the money in the commission also has his labor expenses. These things are called partnership investment. Enlarge this partnership investment model by 100 times and 1000 times, which is the fund.
If a complete contract is established between investors, this private-private partnership investment activity is a private equity fund. If this partnership investment activity is approved by the national securities regulatory authority (China Securities Regulatory Commission), and the lead operator of this activity is allowed to make a public offering to attract investors to join the partnership investment, this is the issuance of publicly offered funds, which is a common fund now.