fund

fund

Fund broadly refers to a certain amount of funds established for a certain purpose, mainly including trust and investment funds, provident funds, insurance funds, retirement funds and various foundations. In a narrow sense, it refers to funds with specific purposes and uses. Generally speaking, the funds we are talking about mainly refer to securities investment funds.

According to different standards, securities investment funds can be divided.

For different kinds:

1. According to whether the fund share can be increased or redeemed, it can be divided into open-end funds (LOF) and closed-end funds.

2. According to different organizational forms, it can be divided into corporate funds (mutual funds) and contractual funds (unit trust funds). China's securities investment funds are all contractual funds. Corporate fund means that the fund itself is a joint stock limited company, and the company raises funds by issuing stocks or beneficiary certificates. Contract fund refers to a fund management company funded by specialized investment institutions (banks and enterprises). As the principal, the fund management company issues the beneficiary certificate-"fund share holding certificate" by signing the "trust deed" with the trustee, so as to raise social idle funds.

3. According to the difference of venture capital and income, it can be divided into growth funds, income funds and balanced funds.

4. According to different investors, it can be divided into four categories: bond fund, stock fund, money fund and hybrid fund. Bond funds are low-risk and low-yield funds. Generally speaking, bond funds do not charge subscription or subscription fees, and the redemption rate is also low. Equity funds are investment funds that invest in stocks. Their main function is to concentrate the small investments of mass investors into large investments. Compared with investors directly investing in the stock market, the risk is lower because the income is relatively stable. Monetary funds are mainly invested in short-term monetary instruments, such as treasury bills, commercial paper, bank time deposit certificates and short-term government bonds.

Short-term securities such as corporate bonds.

Note: The risk of the fund is low, and the threshold for initial investment is low (the fund mentioned here is Public Offering of Fund). Some funds can even invest 1 yuan. Generally, transactions before 3 o'clock on the trading day are counted as transactions of the day. However, although the investment risk is low, investors will also suffer serious losses because they do not understand the fund and its own risk characteristics, or do not form a correct investment concept or method, and buy a fund that is not suitable for them. Therefore, it is very important to read more books and form a correct investment concept. There are many places where you can buy funds, such as fund company official website, brokerage App and bank App. However, due to the cost advantage, it is convenient and fast to use platforms such as Alipay and WeChat Wealth Management.