Securities investment fund refers to a collective investment mode in which funds are raised through public offering of fund shares, managed by the fund custodian, managed and operated by the fund manager, and the interests of fund share holders are shared and the risks are borne by the portfolio.
As a modern investment tool, funds have the following three functions for ordinary investors:
1. Collective investment. Fund is a kind of investment method: the scattered funds are skillfully pooled and handed over to professional institutions to invest in various financial instruments in order to increase the value of assets. The minimum investment requirement of the fund is not high, and investors can decide the purchase quantity according to their own economic ability. Some funds do not even limit the amount of investment, and calculate the income distribution completely according to the share. Therefore, funds can absorb the idle funds of the society most widely and gather together to form a huge investment fund. When participating in securities investment, the stronger the capital, the more obvious the advantages, and may enjoy the relative advantage of large investment to reduce costs, thus obtaining the benefits of scale benefits.
2. spread risks. Reducing risks and improving returns with a scientific investment portfolio is another major feature of the fund. In investment activities, risks and benefits always coexist, so "not putting all your eggs in one basket" is the motto of securities investment. But to realize the diversification of investment assets, it needs certain financial strength. For small investors, it is difficult to do this because of limited funds, and the fund can help small and medium investors solve this difficulty. The fund is rich in funds, which can be scientifically combined within the investment scope stipulated by law and diversified into various securities. With the help of huge funds and public ownership of many investors, on the one hand, the investment risk faced by each investor is reduced, on the other hand, the complementarity between different investment objects is used to achieve the purpose of diversifying investment risks.
3. Professional financial management. The Fund implements an expert management system. These professional managers have been specially trained and have rich investment experience in securities investment and other projects. For those small and medium-sized investors who have no time, or are not familiar with the market, and are unable to make special investment decisions, investment funds can actually gain the advantages of experts in market information, investment experience, financial knowledge, operational technology, etc., and try to avoid the failure caused by blind investment.