Now is the time for all people to manage their finances, but many people can't tell the difference between funds and financial management. This small series will tell you about the difference between financial management and funds.

One: What are funds and financial management?

Financial management is a Chinese word, pinyin is lǐ cái, and English is Financing, which refers to the management of finance (property and debt) for the purpose of maintaining and increasing the value of finance.

Fund, in English, refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations.

Second, the difference between funds and financial management

1, different business entities: the fund is initiated by the fund company and raised with investors' money to invest in securities; And wealth management products are generally launched by financial institutions, such as bank wealth management products, to buy wealth management money to invest in related subject matter.

2. Different investment products: there are few restrictions on fund investment, and different types of funds invest in different products; Bank wealth management products invest more in conservative products such as bonds or some foreign currencies.

3. Different service fees: subscription and redemption of different funds require a certain handling fee; If the investor cancels the contract in advance, he only needs to pay a certain cancellation fee.

4. Fund assets with different security needs to be hosted in banks with custody qualifications, and the establishment and operation of their accounts are strictly independent of the fund managers and custodians, and there are strict requirements for fund information disclosure. However, there is less disclosure of the bank's wealth management funds.