Securities investment fund is the behavior that ordinary investors combine their money and give it to professionals to take care of, and investors take risks and enjoy the benefits. General securities investment funds can only invest in securities such as stocks and bonds, and cannot invest in the equity of industries or companies.

Venture capital fund, also known as venture capital fund, is a fund that mainly invests in some small and medium-sized enterprises that do not have the listing conditions, obtains the company's equity, and sells the shares after the company's IPO is successful, so as to profit from it.

Different financing methods

According to the way of raising funds, securities investment funds can be divided into Public Offering of Fund and private equity funds. Venture capital funds are risky, and generally only private placement can be used.

Different benefits and risks

Securities investment funds invest in securities, so their income level will not exceed the fluctuation level of stocks, bonds and other securities. Venture capital is to earn the difference between the primary market and the secondary market, and the income is much higher. Generally, the average return on investment is around 20%-40%. Of course, high returns also mean high risks. Small and medium-sized enterprises have a long way to go from establishment to listing, so the possibility of listing failure is also great, which means that venture capital faces greater risks.