In the case of not actively increasing holdings, the fund share remains unchanged, and the fund amount will change with the net value of the fund. The net value of the fund refers to the fair price of the fund at a certain point in time, which represents the rights and interests of the fund holders. It can also be simply understood as the price of buying and selling a fund.
Fund, in English, 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 fund we are talking about mainly refers to the securities investment fund.
According to different standards, securities investment funds can be divided into different types:
(1) According to whether the fund unit can be increased or redeemed, it can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market.
(2) 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. China's securities investment funds are all contractual funds.
(3) According to the different investment risks and returns, it can be divided into growth funds, income funds and balanced funds.
(4) According to different investors, it can be divided into bond funds, stock funds, money funds and hybrid funds.
investment fund
General funds mainly invest in large-cap blue-chip stocks, and when calculating the Shanghai Composite Index, large-cap blue-chip stocks also account for a great weight, so the decline and rise of funds are generally related to the decline and rise of the Shanghai Composite Index.
However, it is different for different funds. Some funds are closely related to the Shanghai Composite Index, others are irrelevant, and even some funds can rise when the market falls, depending on what stocks the fund holds.