Suppose you have a sum of money that you want to invest in bonds, stocks, and other securities to increase value, but you have no energy or professional knowledge, and the money is not much, so you think of investing in a partnership with 10 other people and hiring an investment expert (

Theoretically, those who are higher than me) can use the assets jointly produced by everyone to increase investment value.

But here, if more than 10 investors negotiate with investment experts at any time, the matter will not be chaotic, so we recommend one of the most knowledgeable investors to take the lead in handling this matter.

Regularly give him a commission based on a certain percentage from the assets jointly invested by everyone, and he will pay the masters' labor fees on their behalf. Of course, he himself takes the lead in organizing large and small things, including running errands from house to house, and always reminds the masters about the risks.

Point, regularly announce investment profits and losses to everyone, etc. Don't work in vain, the money in the commission also includes his labor fees.

These things are called partnership investments.

Amplifying this partnership investment model 100 times or 1,000 times is a fund.

If this kind of private private partnership investment activity establishes a complete contract between investors, it is a private equity fund (it has not yet been recognized by the relevant national financial industry supervision laws and regulations in our country).

If this kind of partnership investment activity is approved by the national securities industry management department (China Securities Regulatory Commission), and the lead operator of this activity is allowed to raise funds from the public to attract investors to join the partnership, this is the issuance of public funds, that is,

Funds that are common to everyone now.

What is the role of a fund management company?

The fund management company is the lead operator of this kind of partnership investment, but it is a legal person and its qualifications must be approved by the China Securities Regulatory Commission.

The fund company, like other fund investors, is also one of the partner investors. On the other hand, because it takes the lead in the operation, it has to withdraw labor fees (called fund management fees) at a certain proportion from the assets jointly contributed by everyone every year to hire on behalf of the investors.

The investment experts (i.e., fund managers) who are responsible for trading on behalf of the managers, as well as those who help the experts collect information and conduct research, regularly announce the assets and income of the fund.

Of course, these activities of fund companies are approved by the China Securities Regulatory Commission.

In order to ensure the safety of the assets jointly invested by everyone and prevent them from being misappropriated secretly by the lead operator of the fund company, the China Securities Regulatory Commission stipulates that the assets of the fund cannot be placed in the hands of the fund company. The fund company and fund manager are only responsible for trading operations and cannot touch the money.

To take charge of bookkeeping and money management, you need to find someone who is good at it and has high credibility. Of course, this role belongs to a bank.

So these investments (that is, fund assets) are placed in the bank, and a special account is established, which is accounted for by the bank, which is called fund custody.

Of course, the bank's service fees (called fund custody fees) must also be paid annually in proportion to the assets of the partnership.

Therefore, relatively speaking, fund assets only have the risk of losses due to poor operations by those experts, and there is basically no risk of being stolen.

From a legal perspective, even if the fund management company goes bankrupt or even the custodian bank has an accident, the people collecting debts from them have no right to touch the assets of our fund accounts, so the safety of fund assets is very guaranteed.

If this kind of public offering fund is declared established after raising investors within a specified period of time (the state stipulates that it must reach at least 1,000 investors and a scale of 200 million yuan before it can be established), it will stop attracting other investors and agree to

No one can withdraw capital midway, but by a certain year and month from now on, we will all break up and share the burden. If you want to cash out in the middle, you can only find someone else to sell it yourself. This is a closed-end fund.

If after the establishment of this kind of public fund is announced, other investors are still welcome to contribute capital at any time, and at the same time, everyone is allowed to withdraw part or all of their own funds and deserved income at any time, this is an open-end fund.

Regardless of whether it is a closed-end fund or an open-end fund, if in order to facilitate everyone's buying and selling, the fund can be listed on an exchange (securities market) and freely traded among investors at market prices, which is a listed fund.

Now let’s read the concept of funds below, so that we won’t be too confused.

Securities investment funds are a collective investment and financial management method that invests in securities with maximum benefits and minimum risks. That is, by issuing fund units, investors’ funds are pooled and held in custody by a fund custodian (usually a reputable company).

Banks), fund managers (i.e. fund management companies) manage and use funds to engage in investment in financial instruments such as stocks and bonds.

Fund investors enjoy the returns from securities investments and also bear the risks arising from investment losses.

Funds in our country are currently contractual funds, which are a form of trust investment.

Characteristics of securities investment funds: 1. Expert financial management is an important feature of fund investment.

The investment experts equipped by fund management companies generally have profound theoretical foundations in investment analysis and rich practical experience. They use scientific methods to study financial products such as stocks and bonds, combine investments, and avoid risks.

Accordingly, every year the fund management company will withdraw management fees from the fund assets to pay for the company's operating costs.

On the other hand, the fund custodian will also draw custody fees from the fund assets.

In addition, open-end fund holders need to pay directly subscription fees, redemption fees and conversion fees.

Holders of listed closed-end funds and listed open-end funds pay transaction commissions when they buy or sell units.

2. Portfolio investment to spread risks.