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What is a fund? How does it work? Which website has information! thank you
Fund is an indirect way of securities investment. Fund management companies concentrate investors' funds by issuing fund units, 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 share investment risks and benefits. According to different standards, securities investment funds can be divided into different types:

According to whether fund units can be increased or redeemed, they can be divided into open-end funds and closed-end funds. Open-end funds are not listed and traded, but are generally purchased and redeemed by banks, and the fund scale is not fixed; Closed-end funds have a fixed duration, and the fund size is fixed during the duration. Generally listed on the stock exchange, investors buy and sell fund shares through the secondary market.

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. At present, China's securities investment funds are all contractual funds.

According to the difference of investment risk and income, it can be divided into growth fund, income fund and balanced fund.

According to different investors, it can be divided into stock funds, bond funds, money market funds and futures funds.

Buying a fund is very simple. You can trade it in the securities hall, that is, the secondary market, just like ordinary stock investment. It can also be purchased through a bank that cooperates with the fund. Many banks have fund sales, Industrial and Commercial Bank of China and China Construction Bank. If you want to buy it, you can ask about the relevant expenses and interest ratio in detail; Then study the internal situation and past performance of fund management companies.

The main differences between closed-end funds and open-end funds are as follows:

1. total share: the total share of closed-end funds is fixed from the beginning of issuance, and the number of shares remains unchanged except for infrared. The total number of open-end funds is constantly changing according to the number of subscriptions. If the subscription quantity is greater than the redemption quantity, the total share quantity of open-end funds is increasing, and vice versa.

2. Except in special circumstances, closed-end funds have no influence on the fund regardless of profit or loss during its duration. If the redemption amount of an open-end fund is too large and its total share is less than a certain amount (for example, 200 million shares), the open-end fund will stop listing. This forces the fund managers of open-end funds to do a good job.

3. Except SSE ETF and SZSE lof, all open-end funds are redeemed at the closing price of the day, while closed-end funds are bought and sold in time.

4. The discount of closed-end funds is likely to be that the market circulation price of closed-end funds is lower than or higher than their net assets. The market circulation price of closed-end fund reflects its true value, which is equivalent to its net assets.

As for the operation, mainly through the operation of the fund manager, the process is general trend judgment-company performance-risk control-fund manager-transaction.

Small and medium investors should choose open-end funds. Under the current market conditions, it is recommended to choose funds such as Guangfa Small and Medium-sized Fund, Yifangda Fund and Bosera Fund.