1. Closed-end fund:
The fund share is fixed within the term of the fund contract. After the issue expires and the raised funds reach the expected scale, investors will no longer accept subscription or redemption.
Second, the open-end fund:
The fund share is not fixed, and investors can purchase, redeem or convert it through the fund sales channel according to the net value of the fund on the trading day.
Three. Definition of fund:
Fund, in English, refers to a certain amount of funds set up for a certain purpose. It mainly includes provident fund, trust and investment fund, insurance fund, retirement fund and various foundation funds.
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.
Basic knowledge of the fund:
1. Investor:
Investors in funds are individuals or institutions that purchase fund shares. Investors give their own funds to the fund and become shareholders or share holders of the fund.
2. Fund Company:
Fund companies are institutions that manage funds. It is responsible for the day-to-day operation of the fund, including raising funds, managing investment portfolios and issuing fund shares. Fund companies are usually managed by a team of professional fund managers.
3. Fund share:
The fund is divided into several shares, which investors can buy. Each share represents a small part of the portfolio.
4. Portfolio:
The investment portfolio of a fund is a collection of various financial assets constructed by the fund manager according to the investment objectives and strategies of the fund. The goal of portfolio is to realize capital appreciation or maximize income.
5. Net asset value:
The net asset value of a fund is the residual value of the fund assets minus liabilities, which is used to measure the value of the fund. Net asset value is usually calculated and published every day.
6. Front-end loading fee and back-end loading fee:
The expenses that may need to be paid when purchasing funds. The front-end loading fee is charged when purchasing fund shares, and the back-end loading fee is charged when redeeming fund shares.
7. Risks and rewards:
Fund investment involves the balance between risk and return. Different types of funds have different risks and expected returns. Generally speaking, higher-risk investments may bring higher return opportunities, while lower-risk investments usually have lower returns.