Basic concepts of funds Funds From the perspective of capital relationships, funds refer to funds that are used exclusively for a specific purpose and are independently accounted for.

These include not only the endowment insurance funds, retirement funds, relief funds, and education incentive funds unique to various countries, but also China's unique financial special funds, employee collective welfare funds, energy and transportation key construction funds, and budget adjustment funds.

In terms of organizational nature, a fund refers to an institution or organization that manages and operates funds that are used exclusively for a specific purpose and are independently accounted for.

This kind of fund organization can be an unincorporated institution (such as a special financial fund, an education award fund in colleges and universities, an insurance fund, etc.) or an institutional legal person institution (such as China's Soong Ching Ling Children's Foundation, Sun Yefang Economics Award Foundation, Mao Dun

Literary Award Foundation, Ford Foundation, Hobright Foundation in the United States, etc.), or it can also be a corporate legal entity.

Investment funds Investment funds refer to using the mechanism of modern trust relationships to combine various investments in the form of funds in accordance with the basic principles of mutual investment, sharing of returns, and sharing of risks and certain principles of a joint-stock company.

An investment organization system that pools funds dispersed among investors to achieve expected investment purposes.

Securities Investment Fund Securities investment fund is a collective securities investment method with maximum benefit sharing and maximum risk sharing, that is, by issuing fund units, investors’ funds are concentrated, hosted by the fund custodian, and managed and managed by the fund manager.

Use funds to invest in stocks, bonds, foreign exchange, currencies and other financial instruments to obtain investment income and capital appreciation.

Investment funds have different names in different countries or regions. They are called "mutual funds" in the United States, "unit trust funds" in the United Kingdom and Hong Kong, and "securities investment trust funds" in Japan and Taiwan.

Classification of Funds Investment funds can be divided into different categories based on different criteria.

1. Investment funds can be divided into open-end funds and closed-end funds according to whether fund units can be added or redeemed.

An open-end fund refers to an investment fund in which investors can subscribe or redeem fund units at any time after the fund is established, and the fund size is not fixed; a closed-end fund refers to an investment fund whose size is determined before issuance and within the specified period after the issuance is completed.

An investment fund with a fixed fund size.

2. According to different organizational forms, investment funds can be divided into corporate investment funds and contract investment funds.

Corporate investment funds are investment funds in which investors with different investment goals form a profit-oriented joint-stock investment company and invest assets in specific objects; contract investment funds, also called trust investment funds, refer to funds

An investment fund formed by the sponsor issuing fund units based on the fund contract entered into between the sponsor and the fund manager and fund custodian.

3. According to the differences in investment risks and returns, investment funds can be divided into growth investment funds, income investment funds and balanced investment funds.

Growth investment funds refer to investment funds that pursue long-term growth of capital as their investment purpose; income funds refer to investment funds that aim to bring a high level of current income to investors; balanced investment funds refer to investment funds that aim to bring a high level of current income to investors;

An investment fund that aims to pay current income and pursue long-term capital growth.

4. According to different investment objects, investment funds can be divided into stock funds, bond funds, money market funds, futures funds, option funds, index funds and warrant funds, etc.

Stock funds refer to investment funds that invest in stocks; bond funds refer to investment funds that invest in bonds; money market funds refer to short-term money market funds such as treasury bills, large bank negotiable certificates of deposit, commercial papers, corporate bonds, etc.

Investment funds that invest in marketable securities: Futures funds refer to investment funds that mainly invest in various futures varieties; option funds refer to investment funds that invest in stock options that can distribute dividends: Index funds refer to investment funds that invest in various futures varieties;

An investment fund whose investment object is the price index of a certain securities market; a warrant fund refers to an investment fund whose investment object is warrants.

5. According to the type of investment currency, investment funds can be divided into U.S. dollar funds, Japanese yen funds, and Euro funds.

USD funds refer to investment funds that invest in the US dollar market; Japanese yen funds refer to investment funds that invest in the Japanese yen market; Euro funds refer to investment funds that invest in the euro market.

also.

According to the different sources of capital and application areas, investment funds can be divided into international funds, overseas funds, domestic funds, national funds and regional funds, etc. International funds refer to investment funds whose capital comes from domestic sources and invests in foreign markets; overseas funds

Also called offshore funds.

It refers to investment funds whose capital comes from abroad and invests in foreign markets; Domestic funds refer to investment funds whose capital comes from domestic sources and invests in the domestic market; national funds refer to capital which comes from abroad and invests in a specific

National investment funds; regional funds refer to investment funds that invest in a specific region.