A fund in a broad sense refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations. From the accounting point of view, capital is a narrow concept, which refers to funds with specific purposes and uses. The funds we are talking about now mainly refer to securities investment funds.
The differences between stocks and funds are as follows:
1. Different issuers: stocks are certificates issued by listed companies, and investors call them shareholders of listed companies after buying stocks, while funds are collective asset management plan products issued by fund companies, and investors call them share holders after buying them.
2. Different risks: The risks faced by stocks include liquidity risk, systemic risk and operational risk of listed companies, while funds are equivalent to buying a basket of stocks, so the main risk comes from the management risk of fund managers, so the risk of stocks is higher than that of funds.
3. Different returns: stocks are accompanied by high risks and high returns; The risk and return of the fund are relatively moderate.
4. Different trading places: stocks can only be traded on the market, and funds are divided into on-market funds and off-market funds according to different issuance methods.
5. Different investment methods: buying stocks requires investors to analyze and grasp the buying and selling points themselves; Buying a fund is to hand over the funds to the fund manager for investment. The fund manager is more professional and can better grasp the buying and selling points.
legal ground
Measures for the Administration of Securities Investment Fund Management Companies
Article 65 If the shareholders of a fund management company subscribe or transfer their capital contribution in violation of Article 19 of these Measures, or fail to perform their statutory obligations in violation of Article 37 of these Measures, the China Securities Regulatory Commission may order them to make corrections; For its directors, supervisors and senior managers, administrative supervision measures can be taken, such as supervision talks, recording in integrity files, and determining that they are not suitable for holding relevant positions. Article 66 If a fund management company and its shareholders, the directly responsible person in charge and other directly responsible personnel violate laws, administrative regulations and the provisions of the China Securities Regulatory Commission and should be given administrative punishment according to law, they shall be given administrative punishment in accordance with relevant regulations; Anyone suspected of committing a crime shall be transferred to judicial organs according to law and investigated for criminal responsibility.