(1) Integrated financial management and professional financial management. The fund collects the funds of many investors and entrusts the fund manager to invest, which is conducive to giving full play to the scale advantage of the fund and reducing the investment cost. It is a collective financial management behavior. Fund managers generally have a large number of professional investment and research personnel and perfect investment decision-making mechanism. Investors can enjoy professional investment management services by handing over funds to fund managers for management.
(2) Portfolio investment spreads risks. There is a saying in investment science: "Don't put your eggs in the same basket". However, small and medium investors usually can't do this. If investors invest all their money in a company's stock, once the company is badly run or goes bankrupt, investors may suffer heavy losses. Securities investment funds can form a strong financial strength by pooling the small funds of many investors, and can also spread the investors' funds to various stocks at the same time, so that the losses caused by the decline of some stock prices can be made up by the profits of other stocks, which disperses the investment risks. Therefore, "portfolio investment and risk diversification" is a major feature of securities investment funds. In order to control the investment risk, the fund laws and regulations of various countries generally limit the maximum proportion of a single stock invested by a fund to achieve the purpose of portfolio investment. Article 57 of the People's Republic of China (PRC) Securities Investment Fund Law (hereinafter referred to as the Fund Law) stipulates: "Fund managers should use the fund property to invest in securities in the form of asset portfolio." The Measures for the Administration of Investment Operation of Securities Investment Funds promulgated by China Securities Regulatory Commission stipulates that the shares of 1 listed company held by 1 fund shall not exceed the assets of the fund; 10% disputed value. If a fund puts its assets; If you invest 80% of your value in stocks, you should buy at least 8 companies' stocks.
(3) Enjoy the benefits and take risks. After deducting the expenses that the fund should bear from the investment income of the securities investment fund, all the rest belongs to the fund investors. Fund investors enjoy the benefits of securities investment funds according to the number of fund shares they hold, and at the same time bear the risk of losses. Fund managers and custodians can only collect certain management fees and custody fees according to regulations, and shall not participate in the distribution of fund income.
(4) Independent custody and asset security. Asset custody is the basic system of fund operation. The fund manager is responsible for the investment operation of the fund, but does not keep the fund property. The fund property is kept by a custodian completely independent of the manager to ensure the safety of the fund assets.
(5) It is convenient to buy and sell and easy to realize. Fund trading procedures are simple, and investors are easy to invest and realize. Generally speaking, for open-end funds, investors can purchase or redeem funds directly from fund managers, or through sales organizations such as commercial banks and securities companies. Most foreign funds are open-end funds. Generally, the net value of the fund will be announced every day, and investors can purchase and redeem it at any time. Closed-end funds are generally listed and traded on stock exchanges, and the trading procedures are similar to those of stocks. Investors can buy and sell closed-end funds through exchanges.
(6) Strict supervision and transparent information. In order to protect the interests of investors, securities regulatory agencies in various countries have strictly supervised the fund industry, forcing funds to disclose more information so that investors can understand the information and make investment decisions. Due to the continuous innovation of fund products, the classification of funds is becoming more and more complicated.