What is an investment fund?
Investment fund is one of the main ways of asset management. It is a collective investment mode of portfolio investment, professional management, benefit sharing and risk sharing. It mainly issues beneficiary certificates (fund shares) to investors, centralizes social funds and gives them to professional fund management institutions to invest in various assets, so as to maintain and increase the value.
The differences with stock bonds are as follows:
1. reflects different economic relations. Stock reflects a kind of ownership relationship and is a kind of ownership certificate. Investors become shareholders of the company after purchasing shares. Bonds reflect the relationship between creditor's rights and debts, which is a kind of creditor's rights certificate. Investors become creditors of the company after buying bonds. The fund embodies a trust relationship and is a beneficiary certificate. Investors who buy fund shares will become the beneficiaries of the fund.
2. The raised funds are invested in different ways. Stocks and bonds are direct investment tools, and the funds raised are mainly invested in the industrial field; Fund is an indirect investment tool, and the funds raised are mainly invested in financial instruments or products such as securities.
3. Investment income is different from risk. Under normal circumstances, the stock price fluctuates greatly and belongs to high-risk and high-yield investment varieties; Bond can bring some interest income to investors, and its volatility is smaller than that of stocks, so it is a low-risk and low-yield investment product. The fund invests in many stocks, which can effectively spread risks. It is an investment with relatively moderate risk and relatively stable income.
The main types of investment funds: private equity funds, venture capital funds, hedge funds, real estate investment funds and alternative investment funds.
Advantages and disadvantages of investment funds
Advantages of investment funds:
Collective financial management and professional management;
Securities investment and risk diversification;
Enjoy the benefits and take risks;
Strict supervision and transparent information;
Keep it independently to ensure safety.
Disadvantages of investment funds:
Need to pay a certain fee, there are risks.