I. Introduction
Mutual funds are usually set up by investment trust companies, securities companies and other financial institutions. By issuing fund securities, investors subscribe for the raised funds, and then invest in stocks, government bonds and corporate bonds of various listed companies in the securities market. Some mutual funds also invest in options, futures and various short-term financial instruments in the money market.
Second, classification
According to the purpose of investment, mutual funds can be divided into positive growth funds and conservative income funds. The former is concerned about the long-term appreciation of investment funds, while the latter is concerned about the immediate maximum return of investment funds. Therefore, growth funds's investment targets are all kinds of stocks and options with strong capital appreciation ability, while income-oriented funds focus on investing in all kinds of money market financial instruments and bonds with high interest rates and stocks with high dividends.
Third, characteristics
As a cooperative investment method, mutual fund is characterized by pooling the funds of small investors and handing them over to financial experts for investment management, and the proceeds belong to the original investors, so that the funds continue to increase in value. Because mutual funds provide investors with asset risk management and professional investment services, they usually charge management fees, which generally do not exceed 1% of mutual fund assets every year. For investors, on the one hand, mutual funds are conducive to diversifying investment and achieving the purpose of diversifying risks; On the other hand, inviting investment experts to operate and manage investment funds can reduce the losses caused by blind investment.
Fourth, the origin
Mutual funds originated in Europe, prevailed in the United States and spread all over the world. 1990165438+19 October, Credit Agricole Asia Investment Co., Ltd. announced the establishment of "Shanghai Fund" in Hong Kong, which is the first mutual fund with China as the specific investment target.
Five, mutual fund organizations
A mutual fund organization is also called a mutual fund organization or a stock investment company. An investment company, the largest and most dynamic investment institution in the United States. It sells shares to the public and uses the proceeds to buy other securities. As an independent legal entity, mutual fund was established in 1932, with many experts in the field of securities investment as the backbone, attracting public investors and choosing the best scheme for investment.
In the early days, it mainly engaged in various stocks and medium-and long-term bonds, and the stock issuance was not limited. From the 1970s to the early 1980s, due to the influence of inflation, a new type of mutual fund organization appeared in the money market, which mainly engaged in large negotiable certificates of deposit, short-term treasury bills and advanced commercial bills with high liquidity and reliability, and directly traded with investors by mail, telephone and telegram. Therefore, the risk of holding shares in this fund is smaller, the income is higher, and it is more flexible and convenient.