In the United States, the size of a securities investment fund can be as high as tens of billions of dollars; In China, it is generally 2 billion to 3 billion yuan, with a high of 5 billion yuan, which is much higher than the scale of securities investment of individual industrial and commercial enterprises, securities companies and individuals.
Second, professional operation.
Securities investment fund managers gather a large number of professional and experienced personnel to work together, which can effectively overcome the shortcomings of a single industrial and commercial enterprise, securities company or individual in securities investment, such as insufficient information analysis, insufficient market understanding and insufficient operational skills. So as to ensure the effectiveness and income level of securities investment.
Third, portfolio investment.
In order to effectively diversify investment risks, managers usually invest their funds in a dozen or even dozens of securities at the same time. In addition, according to the changes in the securities market and other conditions, combined with the analysis of existing information and long-term operating experience, the securities portfolio held will be adjusted in time to fully disperse risks and strive to seek investment income for fund holders.
Fourth, the long-term benefits are better.
By centralizing the funds of fund investors, securities investment funds realize the centralized investment of managers, and the scale benefit is remarkable, which makes the transaction cost of securities investment funds significantly lower than the total transaction cost of each investor investing in the securities market alone. The investment operation of managers and professionals also improves the efficiency of fund operation and further improves the income level of fund holders. For decades, the yield of securities investment fund holders is generally higher than the interest rates of bank deposits, government bonds and corporate bonds in the same period.
Disadvantages:
1, limitations of the investment field.
2, the limitations of pursuing interests.