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Main investment directions of securities investment funds
The main investment direction of securities investment funds is listed stocks and bonds; Other securities as stipulated by the the State Council Securities Regulatory Authority. At present, China's funds mainly invest in legally listed stocks, non-publicly issued stocks, government bonds, corporate bonds and financial bonds, corporate bonds, money market instruments, asset-backed securities and warrants.

Fund participants generally include three categories, namely, fund parties, market service institutions and industry supervision and self-discipline organizations. Securities investment funds invest in securities by raising funds; Securities investment funds use trust relationships to invest in securities; Securities investment fund is an indirect way of securities investment.

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The risks of securities investment funds mainly include:

1, market risk. The fund mainly invests in the securities market. When the stock market price fluctuates due to economic factors, political factors and other factors, the income level and net value of the fund will change, which will bring risks to fund investors.

2. Manage the ability risk. As a professional investment institution, fund managers do have some advantages over ordinary investors in risk management. However, different fund managers have differences in fund investment management level, management means and management technology, which has an impact on fund income level.

3. Technical risks. When the computer, communication system, trading network and other technical support systems or information network support are abnormal, it may lead to the risk that the daily subscription or redemption of funds cannot be completed within the normal time limit, the registration system is paralyzed, the accounting system cannot display the net value of funds within the normal time limit, and the fund investment trading instructions cannot be transmitted immediately.

4. Huge redemption risk. This is the unique risk of open-end funds. If there are huge redemptions in succession due to market fluctuation or other reasons, fund managers will have difficulties in cash payment, and fund investors may encounter risks such as partial delay or suspension of redemption when applying for huge redemption of fund shares.

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