The definition of fund is: an indirect way of securities investment. By issuing fund shares, fund management companies concentrate investors' funds, which are managed by fund custodians (generally banks) and managed and used by fund managers to invest in financial instruments such as stocks and bonds, and then * * * bear the investment risks and share the benefits.
From this basic definition, we can easily see that fund investment has at least three roles, one is the investor, the other is the fund custodian bank, and the third is the fund management company. For ordinary people who want to buy a fund, they are investors, and there are many investors in the same fund.
Then why invest in funds? For example, a person who doesn't know anything about stocks, bonds, futures and precious metals will definitely lose his principal if he rashly lets him invest in these wealth management products, but what if he doesn't invest? The fund provides such a solution, that is, for people who don't know much about investment, they will pool their funds and give them to a knowledgeable partner, and then he will hire an investment and financial expert to let the financial expert invest with the investor's money, and both he and the knowledgeable partner can get a certain salary. If the investment makes money, they will give it to investors.
Therefore, 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 what we usually call funds. If a complete contract is established between investors, private partnership investment activities are private funds. Private equity funds are more risky and have a higher investment threshold, usually1million, but the investment threshold in Public Offering of Fund is much smaller, with 10 yuan and 100 yuan as investors.
After understanding the basic concept of funds, let's look at the types of fund varieties. According to different standards, different fund types will be obtained.
According to the income, there are four kinds of fixed income funds, minimum income funds, capital preservation floating income funds and non-capital preservation floating income funds. Fixed income means that the income of investment is fixed interest rate; The minimum income means having the minimum income, or possibly exceeding this minimum income; Capital preservation floating income refers to the income on the basis of guaranteed principal; Non-guaranteed floating income refers to the possible loss of principal.
What is the investment of the funds gathered by investors for investment experts? They mainly invest in stocks, bonds and bank deposits. According to different investors, funds can also be divided into stock funds, bond funds, money market funds and hybrid funds.
Equity fund means that more than 60% of the assets of the fund are invested in stocks. Because the fluctuation of stocks may be relatively large, the risks of such funds are also relatively large, and the principal will be lost, and of course, a higher rate of return may be obtained.
Bond fund means that more than 80% of fund assets are used to invest in bonds. The bond risk is very small, and the general income is fixed. Therefore, such funds will basically not lose money, and of course the rate of return they can obtain is limited.
Money market fund refers to the money market only used for investment, namely, central bank bills, short-term bonds, bond repurchase, interbank deposits and cash. The risk of this fund is minimal and the redemption is quick. The funds we usually put in Yu 'ebao or WeChat Wealth Management are actually money market funds.
Hybrid fund refers to the investment in stocks, bonds and money markets, but the investment in stocks cannot exceed 60% and that in bonds cannot exceed 80%. From this ratio, the yield of hybrid funds is generally less than that of stock funds and greater than that of bond funds, but the corresponding risks are also less than that of stock funds and greater than that of bond funds.
There are several special types of funds that can also be learned a little, namely ETF funds, LOF funds, QDII funds and hedge funds.
ETF fund is the abbreviation of exchange traded fund, which is called "transactional open index fund" or "exchange traded fund" in Chinese. ETF is an open-ended securities investment fund product listed and traded on the exchange. The assets under management are a series of stock portfolios, and the types of stocks in this portfolio are the same as those contained in a specific index (such as the SSE 50 Index). The trading price of ETF depends on the value of this series of stocks it owns, and its performance is highly consistent with the rise and fall of the corresponding index.
LOF's English full name is listed open-end fund, Chinese translation is "listed open-end fund", and it is also called "* * * mutual fund" abroad. Its product features are the same as those of ordinary open-end funds, only adding new channels for secondary market transactions. (Open-end funds refer to unlisted transactions, usually subscribed and redeemed by banks, and the fund size is not fixed. )
The English full name of QDII is qualified domestic institutional investor, and the Chinese translation is "qualified domestic institutional investor". It is a securities investment fund established in China and approved by relevant departments to engage in securities business such as stocks and bonds in overseas securities markets.
Hedge Fund is called Hedge Fund in English, which originated in the United States in 1950s. The purpose of the operation at that time was to use financial derivatives such as futures and options to buy and sell related different stocks. Risk hedging operation skills can avoid and resolve investment risks to a certain extent.
In addition to the above classification, it can also be divided into open-end funds and closed-end funds according to whether fund units can be increased or redeemed; According to different organizational forms, it can be divided into corporate funds and contractual funds; According to the difference of investment risk and income, it can be divided into growth funds, income fund and balanced fund.
In fact, for people who invest in funds, it is to hire others to help them invest, and there is no need to understand the concepts of various funds thoroughly. The types of funds mentioned above are mainly classified according to different investment objects (stock, bond, currency, mixed) and ETF funds in special funds.
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