Securities investment fund refers to an independent fund property formed by the funds raised by selling fund shares. It is managed by the fund manager and entrusted by the fund custodian to invest in securities in the form of portfolio, and the fund share holders enjoy the benefits and bear the risks according to their shares.
1. Securities investment funds are a way to raise securities investment funds. The main way to raise funds is to issue fund bonds to investors, and concentrate the small funds scattered by many investors into a large amount of funds to invest in securities such as stocks and bonds.
2. Securities investment funds use trust relationship to make securities investment. The so-called trust is to entrust my property to a trusted third party to manage and use it according to my requirements. Investors entrust their property to a professional institution for securities investment, which is their trust. The institution manages and invests according to the requirements of investors and distributes the proceeds to investors.
3. Securities investment fund is an indirect way of securities investment. Therefore, investors cannot participate in the decision-making and management of securities issuing companies.
In other words:
1. Securities investment fund is a collective investment system.
Securities investment fund is a comprehensive way of securities investment, which collects huge funds from investors, establishes investment management companies and conducts professional management and operation.
2. Securities investment fund is a kind of trust investment.
Like the general financial trust relationship, it mainly includes the principal, the trustee and the beneficiary, among which there is a trust contract between the trustee and the principal.
3. Securities investment fund is a kind of financial intermediary.
It exists between investors and investment objects. It transforms investors' funds into financial assets through specialized institutions, and then invests in the financial market, thus realizing the appreciation of monetary assets.
4. Securities investment fund is a securities investment tool.
The fund bonds issued by it, together with stocks and bonds, constitute three kinds of securities. Investors complete their investment behavior by purchasing fund bonds, share the investment income of securities investment funds and bear the investment risks of securities investment funds.
The advantages of choosing a securities investment fund are: 1. Collective financial management and professional management; 2. Investing in securities to spread risks; 3. Benefit sharing and risk sharing; 4. Strict supervision and transparent information; 5. Independent custody to ensure safety.
The risks of choosing a securities investment fund are: 1. Liquidity risk; 2. Discount risk; 3. Managing risks; 4. Systemic risk; 5. Purchasing power risk.