According to whether fund units can be increased or redeemed, they can be divided into open-end funds and closed-end funds. Open-end funds are not listed and traded, but are generally purchased and redeemed by banks, and the fund scale is not fixed; Closed-end funds have a fixed duration, and the fund size is fixed during the duration. Generally listed on the stock exchange, investors buy and sell fund shares through the secondary market.
According to different organizational forms, it can be divided into corporate funds and contractual funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. At present, China's securities investment funds are all contractual funds.
According to the different investment risks and returns, it can be divided into growth funds, income funds and balanced funds.
According to different investors, it can be divided into stock funds, bond funds, money market funds and futures funds.
Buying a fund is very simple. You can trade it in the securities hall, that is, the secondary market, just like ordinary stock investment. It can also be purchased through a bank that cooperates with the fund. Many banks have fund sales, Industrial and Commercial Bank of China and China Construction Bank. If you want to buy it, you can ask about the relevant expenses and interest ratio in detail; Then study the internal situation and past performance of fund management companies.
The total number of fund units of open-end funds is not fixed, which can be issued according to the development needs and redeemed by investors. The redemption price is equal to the current net asset value minus the handling fee.
Because investors can freely join or withdraw from this open-end investment fund, and there is no limit on the number of investors, it is also called * * * mutual fund. Most investment funds are open.
The total amount of closed-end funds is limited, and once the issuance plan is completed, no additional issuance will be made. Investors are not allowed to redeem, but the fund shares can be publicly transferred on the stock exchange or OTC market, and the transfer price is determined by market supply and demand.
The differences between the two are as follows:
1, the variability of fund size is different. The fund shares issued by open-end funds are redeemable, and investors can subscribe for the fund shares at any time, so the size of the fund is not fixed; The scale of closed-end funds is fixed.
2. The transaction prices of fund units are different. The buying and selling price of fund units of open-end funds is based on the net asset value corresponding to the fund units, and there will be no discount. The price of closed-end fund shares will be more affected by the relationship between market supply and demand, and the price fluctuates greatly.
3. The trading channels of fund units are different. Investors of open-end funds can buy or redeem funds directly from fund management companies at any time, and the handling fee is low. The trading of closed-end funds is similar to stock trading, which can be traded in the securities market and requires the payment of handling fees and securities transaction tax. Generally speaking, the cost is higher than that of open-end funds.
4. Different investment strategies. Open-end funds must reserve a part of their funds to cope with investors' redemption at any time, and long-term investment will be restricted. However, closed-end funds cannot be redeemed, so they can make full use of funds, make long-term investments and achieve long-term business performance.
5. The required market conditions are different. Open-end funds are flexible, easy to scale, and suitable for financial markets with high openness and large scale. On the contrary, closed-end funds are suitable for financial markets with imperfect financial system, low openness and small scale.