Funds have broad and narrow definitions. Fund in a broad sense is the general name of institutional investors, including trust and investment funds, unit trust funds, provident funds, insurance funds, retirement funds and funds of various foundations. Funds in the existing securities market, including closed-end funds and open-end funds, have the characteristics of income function and value-added potential. From the accounting point of view, capital is a narrow concept, which refers to funds with specific purposes and uses. Because the investors of government agencies and institutions do not require investment returns and investment recovery, but require funds to be used for designated purposes in accordance with the law or the wishes of the investors, funds are formed. The funds we are talking about now usually refer to securities investment funds. Most people think it is a stock fund and a securities investment fund. Securities investment fund refers to a collective investment method that pools the funds of many investors to form independent assets by selling fund shares, which are managed by fund custodians and fund managers and share the benefits and risks of securities investment in the form of portfolio. Securities investment fund is an indirect way of securities investment. By issuing fund shares, fund management companies concentrate investors' funds, which are managed by fund custodians (that is, qualified banks) and managed and used by fund managers to invest in financial instruments such as stocks and bonds, and then * * * bear the investment risks and share the benefits. According to different standards, securities investment funds can be divided into different types: according to whether the fund share can be increased or redeemed, it 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. Securities investment funds are called "mutual funds" in the United States, "unit trust funds" in Britain and China SAR, and "securities investment trust funds" in Japan and Taiwan Province Province. Securities investment fund is a kind of collective investment and financial management method with shared interests and risks. That is, by issuing fund units, investors' funds are concentrated, managed by fund custodians (usually reputable banks), managed and used by fund managers (namely fund management companies), and invested in financial instruments such as stocks and bonds. While enjoying the income from securities investment, fund investors should also bear the risks brought by investment losses. The funds in China are all contract funds for the time being, which is a trust investment method. Just open an account with your ID card. At present, there are three main channels to buy open-end funds, and the cheapest is floor trading:

Securities companies can buy and sell open-end funds, index funds, closed-end funds, LOF funds, stocks, warrants and bonds. There are more than 500 kinds of open-end funds.

One. Bank subscription: it is the worst way to buy and sell funds: front-end fee 1.5%, redemption fee 0.5%, and back-end fee about 2%. However, if it is held for less than half a year, the redemption fee is charged year by year. Generally, there is no redemption fee for holding for more than three years. Each bank can probably buy 100 kinds of funds, and the money will arrive in 4-7 days, which takes a long time. Maybe the market has changed and you want to reapply, but the money hasn't arrived yet. This is the worst way to buy and sell funds.

Two. Go directly to the fund company to purchase from the Internet: 1.5% of the subscription fee can be discounted by 60%, and the redemption fee is 0.5%. Each fund company can buy its own fund and register several fund companies online. When opening an online bank, it takes 4-7 days for the money to arrive at the account when it is redeemed, which takes a long time. Maybe the market has changed and you want to reapply, but the money hasn't arrived yet. It is troublesome to open online banking and register a number of fund companies online, which is a poor way to buy and sell funds.

Three. Open a securities account and apply online at home without going to the bank. Some securities companies say that we have preferential policies for buying funds: the subscription fee is 0.3% and the redemption fee is 0.3%. Open-end funds, such as South China's active allocation and South China's high-growth Guangfa small-cap funds, can also buy index funds, that is, six ETF funds, such as Yifangda Shen 100 ETF Huaxia SSE 50 and AIA Dividend ETF, have low cost advantages, and the handling fee for buying and selling funds in securities companies is 0.3%.