This kind of fund, equivalent to industrial investment fund, is closed and can be freely transferred when it is listed. Venture capital fund, also known as venture capital fund, is a new type of investment institution widely popular in the world today. It absorbs funds from institutions and individuals in a certain way, and invests in small and medium-sized enterprises and emerging enterprises that are not qualified for listing, especially high-tech enterprises. The venture capital fund does not need the asset mortgage guarantee of the venture enterprise, and the procedure is relatively simple. Its management policy is to pursue high returns in high risks. Venture capital funds mostly participate in investment in the form of shares, with the purpose of helping the invested enterprises to mature as soon as possible and obtain listing qualifications, so as to achieve the purpose of increasing capital. Once the company's shares are listed, venture capital funds can recover their funds through equity transfer in the securities market and continue to invest in other venture enterprises. At present, venture capital funds in the world can be roughly divided into two types: European type and Asian type, and their main difference lies in the different investment objects. Venture capital fund is a modern investment mechanism of expert financial management, collective investment and risk diversification. For venture enterprises, financing through venture capital funds not only has no debt burden, but also can get expert advice, expand the advertising effect and speed up the listing process. Especially in high-tech industries, venture capital can reduce the industry risks caused by long investment cycle through expert management and portfolio investment, effectively balance the high risks and high returns of high-tech industries, and thus provide sufficient and stable capital supply for the development of industries. In addition, as investors of venture capital funds, they can also get rich investment returns from the fund's large-scale economy and successful investment operation. Hedge funds are also called arbitrage funds or hedge funds. Hedge originally refers to the speculative method of using two bets to prevent losses in gambling. Therefore, speculative funds traded in the financial market are called hedge funds. American hedge funds have developed with the development of American financial industry, especially the emergence of futures and options trading. At present, there are at least 4,200 hedge funds in the United States with a total capital of over $300 billion. 1. The characteristics of hedge funds The biggest feature of hedge funds is loan speculation, that is, short selling. About 85% hedge funds in the United States speculate on loans. After selecting a suitable market or project, they make huge loans to commercial banks, investment banks or stock exchanges with a small amount of funds as the bottom, and then invest a lot of money in them.