2. The fund has experienced hundreds of years of development, and its family members have become quite rich. For any kind of investment tools, almost all have corresponding fund products. Before investing, we must first understand the characteristics of the fund and choose the fund variety that suits us. Below we will introduce four main classification methods.
Classification 1: Funds can be divided into closed-end funds and open-end funds according to different modes of operation.
1. Closed-end fund: the fund share is fixed within the term of the fund contract. After the issue expires and the raised funds reach the expected scale, investors will no longer accept subscription or redemption.
2. Open-end fund: The fund share is not fixed, and investors can purchase, redeem or convert it through fund sales channels according to the net value of the fund on the trading day.
Classification 2: Funds can be divided into stock funds, bond funds, hybrid funds and money market funds according to different investment objects.
1. Equity funds: According to the classification standard of China Securities Regulatory Commission on fund categories, more than 60% of fund assets are invested in stocks, and the expected risk-return level is relatively high.
2. Bond funds: According to the classification standard of China Securities Regulatory Commission on fund categories, more than 80% of the fund assets invested in bonds are bond funds. Domestic bond funds mainly invest in government bonds, financial bonds and corporate bonds, with relatively stable yields and long-term expected returns higher than those of money market funds.
3. Hybrid fund: According to the classification standard of China Securities Regulatory Commission for fund categories, it invests in the stock and bond markets at the same time, but the proportion of stock investment and bond investment does not belong to stock funds or bond funds, but belongs to hybrid funds.
4. Money market fund: The fund invests in safe and liquid money market instruments, with low annual rate of return and little risk, and its subscription and redemption are quite flexible, even comparable to demand deposits.
Classification 3: According to different investment objectives, funds can be divided into growth funds, value funds and balanced funds.
1. growth funds: For the purpose of pursuing capital appreciation, he mainly invests in the stocks of listed companies with good growth, and pays little attention to the current income.
2. Value-based funds: the basic goal is to pursue stable recurring income, mainly investing in large-cap blue-chip stocks, government bonds, corporate bonds and other stable income securities.
3. Balanced fund: giving consideration to capital appreciation and current stable income.
Generally speaking, growth funds has the highest expected risk-return level, value funds have the lowest, and balanced funds are somewhere in between.
Classification 4: Funds can be divided into active funds and passive (exponential) funds according to different investment concepts.
1. active fund: it is a fund that strives to exceed the performance benchmark and expects a higher risk-return level than passive funds.
2. Passive funds: they do not actively seek to achieve performance beyond the market, but try to copy the performance of the index. Generally, they choose a specific index as the tracking object, so they are usually called index funds.
In addition, there are some special types of funds:
1. Series (umbrella-shaped fund): refers to a fund structure in which multiple funds * * * share a fund contract, each sub-fund conducts investment management independently, and each sub-fund can be converted with each other, usually without additional fees. By the end of 2006, there were 9 series funds (including 24 sub-funds) in China.
2. Capital preservation fund: use special investment technology to lock in the risk of fund decline and strive for the opportunity to obtain potential high returns. By the end of 2006, there were 6 capital preservation funds in China.
3.ETF (exchange traded fund): an open-end fund with variable fund share, which is listed and traded on the exchange.
4.LOF (Listed Open-end Fund): An open-end fund that can purchase and redeem fund shares in the OTC market and trade fund shares in the exchange (OTC market).
5.FOF (fund in fund): The investment object is a fund, also known as a combined fund.
According to the organizational form of open-end funds, open-end funds can be divided into corporate open-end funds and contractual open-end funds.
Corporate open-end fund is a joint-stock investment company composed of some investors with the same investment objectives in accordance with the company law, mainly investing in securities to obtain income.
Contractual open-end fund is an open-end fund established according to a certain trust deed, and its structure is generally composed of three parties: the principal, the trustee and the beneficiary. The fund management company is the principal, the fund custodian is the trustee and the investor is the beneficiary. The three parties establish mutual relations by signing trust and investment contracts.
The funds in the United States are mostly corporate funds, while those in Hongkong, Taiwan Province and Japan are mostly contractual funds.
At present, domestic open-end funds are all contractual open-end funds.