Funds have broad and narrow definitions. A fund in a broad sense refers to a certain amount of funds set up for a certain purpose. Such as trust and investment funds, provident funds, insurance funds, retirement funds and various foundations. People usually refer to funds mainly as securities investment funds.

There are three main analysis methods of securities investment: basic analysis, technical analysis and evolution analysis, in which the basic analysis is mainly applied to the value judgment and selection of investment objects, while the technical analysis and evolution analysis are mainly applied to the time and space judgment of specific investment operations as an important supplement to improve the effectiveness and reliability of securities investment analysis.

Suppose you have a sum of money and want to invest in securities such as funds to increase the value, but you have no energy, professional knowledge and little money, so you want to invest in partnership with other 10 people and hire an investment expert to operate the assets invested by everyone to increase the value. But there, if investors above 10 consult with investment experts at any time, it would be too unreliable, so they chose a person who knows the most about it to take the lead. Give him a certain percentage of each person's assets regularly, and he will pay the service fee to the investment master on his behalf. Of course, he will take the lead in making arrangements for big and small things, including running errands from door to door, reminding the master of risks at any time, and regularly announcing the investment profits and losses to everyone. It didn't come for nothing, and the money in the commission also has his service fee. These things are called partnership investment.

Expanding this partnership investment model by 100 times and 1000 times is the fund.

This kind of private partnership investment activity belongs to private equity fund if a complete contract is established between investors (which has not been recognized by the relevant laws and regulations of the national financial industry supervision in China).

If this partnership investment activity is approved by the state securities regulatory authority (China Securities Regulatory Commission), and the lead operator of this activity is allowed to make a public offering to attract investors to join the partnership investment, this is a public offering fund, which belongs to ordinary funds.

Funds can not only invest in securities, but also invest in enterprises and projects. By issuing fund shares, fund management companies concentrate investors' funds, which are managed by fund custodians (that is, qualified banks) and managed and used by fund managers to invest in financial instruments such as stocks and bonds, and then * * * bear the investment risks and share the expected annualized income.

Fund classification

According to different standards, securities investment funds can be divided into different types:

(1) According to whether the fund unit can be increased or redeemed, it can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market.

(2) According to different organizational forms, it can be divided into corporate funds and contractual funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.

(3) According to the difference between investment risk and expected annualized return, it can be divided into growth fund, income fund and balanced fund.

(4) According to different investment objects, it can be divided into stock funds, bond funds, money market funds and futures funds.