Chinese name: securities investment fund

definition

According to the definition of "Interim Measures for the Management of Securities Investment Funds", a securities investment fund refers to a kind of collective securities investment method which concentrates investors' funds by issuing fund shares, is managed by fund custodians and managed and used by fund managers, and invests in financial instruments such as stocks and bonds. International experience shows that funds can greatly promote the transformation of savings funds into investment, stabilize and activate the securities market, increase the proportion of direct financing, improve the social security system and improve the financial structure. The development of China Securities Investment Fund also shows that the development of the fund has promoted the healthy and stable development of the securities market and the perfection of the financial system, and played an increasingly important role in the national economic and social development.

There are many kinds of securities investment funds, which can be classified in different ways. According to whether the beneficiary unit can subscribe or redeem at any time and the different transfer methods, it can be divided into open-end funds and closed-end funds; According to the different organizational forms of investment funds, they can be divided into corporate funds and contractual funds; According to the different investment objects, investment funds can be divided into money funds, bond funds and stock funds.

China Securities Investment Fund started in March, 1998. In a short time, it has successfully achieved several historic leaps from closed-end funds to open-end funds, from capital markets to money markets, from domestic fund management companies to joint venture fund management companies, and from domestic investment to overseas financial management. They have gone through decades and hundreds of years in developed countries and made remarkable achievements. At present, securities investment funds have reached a considerable scale and become the most important institutional investment force and one of the most important investment tools for investors in China securities market.

By the end of 1999, the assets of China fund industry were only 57.7 billion yuan, and by the end of 2006, the assets of funds had reached 622 billion shares and 856.4 billion yuan. As of June 65438+February 3, 2006, including 53 closed-end funds, there are 32/kloc-0 funds owned by 53 fund management companies in China for investors to choose from. Open-end funds have developed rapidly since they were launched in 200 1. By the end of 2006, the proportion of open-end funds in the net assets of all funds has exceeded 80%. From the perspective of fund types, China has launched stock funds, bond funds and money market funds, and has also rapidly developed ETF, LOF and other varieties, and has also taken great steps in trying QFII and QDII.

With the rapid development of China's fund industry, the status and influence of securities investment funds in China's capital market are constantly improving, and its positive role in the development of China's capital market is gradually emerging.

Securities investment funds are called "mutual funds" in the United States, "unit trust funds" in Britain and China SAR, and "securities investment trust funds" in Japan and Taiwan Province Province.

1March 1998, China promulgated the Interim Measures for the Administration of Convertible Corporate Bonds, which made detailed provisions on the initiation, establishment, offering and listing of securities investment funds.

classify

(1) According to the variability of fund size and duration, it can be divided into open-end funds and closed-end funds;

Open-end fund: an open-end fund is a fund with variable issuance amount, and the total number of fund shares (units) can be increased or decreased at any time. Investors can purchase or redeem at the business place designated by the fund manager according to the quotation of the fund.

Closed-end fund: the total amount of closed-end funds is predetermined, and the total number of fund units remains unchanged during the closed period. After the issuance, it can be listed and traded, and investors can buy and sell fund shares through securities companies.

(2) According to the organizational form of funds, they are divided into corporate funds and contractual funds;

Contractual fund: Contractual investment fund is established according to the trust law, that is, the trustee, the trustee and the beneficiary conclude a trust investment contract, the fund manager company uses the trust property according to the contract, the trustee (trust company or bank) is responsible for keeping the trust property, and the investment results are enjoyed by the investor (beneficiary).

Company Fund: A company fund is an investment fund established according to the Company Law. Investors buy shares of the company and become shareholders. The directors and supervisors are elected by the shareholders' meeting, and then the directors and supervisors vote to designate an investment management company to manage the company's assets. The sales of such fund shares are generally entrusted to specialized underwriting companies.

(3) According to the risk-return characteristics of the fund, it is divided into growth type, balance type and income type;

(4) According to the investment object or investment scope of the fund, it is divided into stock funds, bond funds, money market funds, futures funds, option funds, warrant funds, funds in funds and mixed funds;

(5) According to the sources and uses of funds, funds can be divided into onshore funds and offshore funds.

(6) Divided into Public Offering of Fund and private equity funds according to fund raising methods;

trait

1. Expert financial management is an important feature of fund investment. Investment experts equipped by fund management companies generally have a profound theoretical foundation of investment analysis and rich practical experience, scientifically study financial products such as stocks and bonds, make portfolio investments, and avoid risks. Accordingly, the fund management company will withdraw management fees from the fund assets every year to pay the company's operating costs. On the other hand, the fund custodian will also withdraw the custody fee from the fund assets. In addition, open-end fund holders need to pay the subscription fee, redemption fee and conversion fee directly. Holders of listed closed-end funds and listed open-end funds need to pay trading commissions when buying and selling fund shares.

2. Securities investment and risk diversification. By pooling the funds of many small and medium-sized investors, the securities investment fund has formed a strong strength, which can diversify the investment in multiple stocks at the same time, thus dispersing the risk of concentrated investment in individual stocks.

3. Convenient investment and strong liquidity. The minimum investment requirements of securities investment funds are generally low, which can meet the needs of small and medium-sized investors for securities investment. Investors can decide the investment quota of the fund according to their own financial resources. Most securities investment funds have strong liquidity, which makes it very convenient for investors to recover their investment. China also gives tax exemption to people's fund investment income.