1. The concept of securities investment funds
Investment funds refer to the formation of independent fund assets by raising funds from investors . Professional investment institutions (fund managers) carry out fund investment and management, and fund custodians carry out asset custody. Fund investors share investment income and share investments. A form of collective investment that reduces risk .
2. The names of securities investment funds in different regions
United States: Mutual Funds
United Kingdom and Hong Kong: unit trust funds
Some European countries: “collective investment funds” or “collective investment schemes”
Japan and Taiwan: Securities Investment Trust Funds
(U.S., Communist, European, British and Hong Kong certificates, Japanese and Taiwan certificates)
3. Characteristics of securities investment funds
Integrated financial management and professional management
Portfolio investment, risk diversification
Sharing benefits and sharing risks
Strict supervision and information transparency
Independent hosting and security guaranteed
4. The difference between securities investment funds, stocks and bonds
1. Reflect different economic relationships
Stocks: Ownership Relations
Bond: creditor-debt relationship
Fund: trust relationship (except corporate funds)
2. The funds raised are invested in different directions
Stocks: direct investment , investment in industry
Bonds: direct investment , investment in industry
Funds: indirect investment , avatar securities and other financial instruments
3. Different levels of return and risk
Stocks: riskier
Bonds: less risky
Fund: The return may be higher than that of bonds, but the investment risk may be lower than that of stocks
