The fund mentioned here is the abbreviation of "securities investment fund" and is an investment and financial management tool.

Its characteristics include the following aspects.

1. Expert financial management Financial management is an indispensable and important part of people's contemporary life.

In order to resist inflation and maintain and increase the value of financial assets, investment and financial management should and must be carried out.

However, as ordinary retail investors, they lack sufficient financial management knowledge and do not have so much time and energy to take care of it.

Investment funds mean that for a small fee, experts from the fund company will invest in stocks, bonds and other instruments that can be invested in the financial market for you.

The fund company has experts with rich investment experience and profound financial knowledge.

They have keen observation and analytical judgment skills, can grasp a large amount of information in a timely manner, and can make relatively accurate predictions on the price movement trends of various varieties in the financial market, thus minimizing investment decision-making errors and improving investment success rates.

.

By investing in a fund, you can gain the advantages that experts have in market information, investment experience, financial knowledge and operating techniques, thereby avoiding losses caused by blind investment as much as possible.

Cheng Siwei, former deputy director of the Standing Committee of the National People's Congress and a famous economist, once said, "As institutional investors who are experts in financial management, funds behave more rationally and have relatively strong ability to prevent risks, which is conducive to the stable development of the market; on the other hand, funds

, through funds, more people can be attracted to enter the capital market. Retail investors buy funds and hand over their money to fund managers to operate them for them. The funds take advantage of expert financial management, which can not only reduce the costs of retail investors, but also avoid large-scale investment.

"2.

Collective investment There are so-called "bookmakers" in the stock market, which are institutions or large investors who hold huge amounts of funds and have certain abilities to directly or indirectly manipulate the market.

While bankers make profits through various means, they also cause losses to small and medium-sized investors.

Individuals have limited funds that can be used for investment and financial management, and the amount is small. Compared with institutional investors with strong funds and large wealthy investors, they are in a weak position and are often vulnerable to harm.

The entry threshold for fund investment is low, with a starting point of only 1,000 yuan. However, by concentrating a large number of funds from small and medium-sized investors, fund companies are in a strong position in investment activities.

3.

The fund is a combination of stocks and bonds. The investment scope of the fund can be summarized as follows: stocks, bonds and other investment tools permitted by laws and regulations, including money market interest-bearing tools such as large deposits and central bank bills. In addition to money funds, the main

Is a combination of stocks and bonds.

"Don't put all your eggs in one basket" is the motto of securities investment.

However, to achieve diversification of investment assets, a certain amount of financial strength is required.

For small investors, due to limited funds, they can only invest in a few stocks. When the stock market falls or the financial condition of listed companies deteriorates, the principal will suffer a great loss, and the fund, with its strong

Within the investment scope stipulated by the law, the funds are invested in different maturities and different types of securities in different proportions in a scientific investment portfolio to minimize the risk, which is better than investing in a certain stock in a single transaction.

The risk is much smaller.

Looking at the investment channels in the current market, there are stocks, bonds, funds, precious metals (gold and silver), commodity futures, stock index futures, foreign exchange, collections and warrants, etc. Among them, in addition to funds, they all require deeper knowledge and richer knowledge.

The operating experience is relatively high, the starting threshold is relatively high, and it requires a lot of time and energy. It is difficult for ordinary small and medium-sized investors to get involved.

From the above, it is obvious that it is a tool suitable for public investment.