What are investment funds?

What types of investment funds are there?

Investment funds are a collective investment method with maximum benefits and maximum risks. That is, through the issuance of fund units, investors' funds are pooled and held in custody by the fund custodian. The fund manager manages and uses the funds to engage in stock trading.

, bonds, foreign exchange, currencies and other financial instruments to invest in to obtain investment income and capital appreciation.

Investment funds have different names in different countries or regions. They are called "mutual funds" in the United States, "unit trust funds" in the United Kingdom and Hong Kong, and "securities investment trust funds" in Japan and Taiwan.

Investment funds can be divided into different categories according to different standards.

<1) Investment funds can be divided into open-end funds and closed-end funds according to whether fund units can be added or redeemed.

An open-end fund refers to an investment fund in which investors can subscribe or redeem fund units at any time after the fund is established, and the fund size is not fixed; a closed-end fund refers to an investment fund whose size is determined before issuance and within the specified period after the issuance is completed.

An investment fund with a fixed fund size.

(2) According to different organizational forms, investment funds can be divided into corporate investment funds and contract investment funds.

Corporate investment funds are investment funds in which investors with different investment goals form a profit-oriented joint-stock investment company and invest assets in specific objects; contract investment funds, also called trust investment funds, refer to funds

An investment fund formed by the sponsor issuing fund units based on the fund contract entered into between the sponsor and the fund manager and fund custodian.

(3) According to the differences in investment risks and returns, investment funds can be divided into growth investment funds, income investment funds and balanced investment funds.

Growth investment funds refer to investment funds that pursue long-term growth of capital as their investment purpose; income funds refer to investment funds that aim to bring a high level of current income to investors; balanced investment funds refer to investment funds that aim to bring a high level of current income to investors;

An investment fund that aims to pay current income and pursue long-term capital growth.

(4) According to different investment objects, investment funds can be divided into stock funds, bond funds, money market funds, futures funds, option funds, index funds and warrant funds, etc.

Stock funds refer to investment funds with stocks as investment objects; bond funds refer to investment funds with bonds as investment objects; money market funds refer to currencies such as treasury bills, large bank negotiable deposit certificates, commercial papers, corporate bonds, etc.

Investment funds that invest in short-term market securities: futures funds refer to investment funds that mainly invest in various futures products; option funds refer to investment funds that invest in stock options that can distribute dividends: index funds

It refers to an investment fund that uses the price index of a certain securities market as its investment object; a warrant fund refers to an investment fund that uses warrants as its investment object.

(5) According to the investment currency category, investment funds can be divided into US dollar funds, Japanese yen funds, Euro funds, etc.

USD funds refer to investment funds that invest in the US dollar market; Japanese yen funds refer to investment funds that invest in the Japanese yen market; Euro funds refer to investment funds that invest in the euro market.

also.

According to the different sources of capital and application areas, investment funds can be divided into international funds, overseas funds, domestic funds, and domestic funds.

International funds refer to investment funds whose capital originates from within the country and invests in foreign markets; overseas funds are also called offshore funds.

Refers to investment funds whose capital originates from outside _ and invests in _ external markets; domestic funds refer to investment funds whose capital originates from _ within _ and invests in _ internal markets; _ home funds refer to capital which originates from outside _ and invests in _ internal markets.

And invest in a specific country's investment funds; regional funds refer to investment funds that invest in a specific region.