What are the main types of investment funds?

What are the main types of investment funds?

Investment fund is one of the main ways of asset management. Social funds are mainly collected by issuing beneficiary certificates (fund shares) to investors, and are invested in various assets by professional fund management institutions to maintain and increase value. The following are the main categories of investment funds compiled by Bian Xiao, hoping to help you!

Main types of investment funds

(1) Securities investment funds

In accordance with the principle of * * * sharing benefits and * * taking risks, securities investment funds concentrate the funds scattered in the hands of investors and entrust professional investment institutions to manage securities investment with investment tools. The securities invested by the Fund are mainly those publicly traded on stock exchanges or inter-bank markets, including stocks, bonds, currency and financial derivatives.

Securities investment funds are the most important type of investment funds, which can be divided into public securities investment funds and private securities investment funds. Securities investment funds are the focus of this book.

(2) Private equity funds

Pfivateequity Fund (PE) refers to the private equity investment in private enterprises, that is, unlisted enterprises. In the process of transaction implementation, the future exit mechanism is considered, that is, through listing, mergers and acquisitions or management buyback, the shares are sold for profit.

(3) venture capital fund

Venturecapital (VC), also known as venture capital, absorbs funds from institutions and individuals in a certain way, invests in start-up or small-scale new enterprises, especially high-tech enterprises, and helps the invested enterprises to mature as soon as possible and obtain listing qualifications, thus realizing capital appreciation. Once the company's shares are listed, venture capital funds can recover their funds through equity transfer in the securities market and continue to invest in other venture enterprises. Venture capital funds generally also take the form of private placement.

(4) Hedge funds

Hedgefund, which means "hedge fund", is an investment model based on investment theory and extremely complex financial market operation skills, making full use of the leverage of various financial derivatives, taking high risks and pursuing high returns. Hedge funds generally adopt private placement and invest heavily in financial derivatives.

Hedge funds originated in the United States in the early 1950s. The purpose at that time was to use financial derivatives such as futures and options, as well as the operating skills of short selling and risk hedging related stocks to avoid and resolve investment risks to a certain extent. After decades of evolution, the operation strategy of hedge funds has been many times more complicated than the method of hedging long risks with short positions when it was first born. Although the word "hedge" is far from covering these investment strategies and methods, people are still used to calling such funds "hedge funds".

(5) Alternative investment funds

Alternative investment funds refer to funds that invest in financial and physical assets other than traditional stocks and bonds, such as real estate, securitization assets, hedge funds, commodities, gold, works of art, etc. Alternative investment funds generally adopt private placement, with a wide variety and uncertain extension. Some people bring private equity funds, venture capital funds and hedge funds into the scope of alternative investment funds.

Advantages of investment funds

Gather small amounts of money

Ordinary investors (such as ordinary families) generally have limited funds, and many markets require high funds for participants, so ordinary investors will lose many opportunities. Investment funds can solve this problem, and can also be said to provide a channel for small investors to contact various investment markets.

Diversify investment and control risks.

Investment funds can choose to invest in a variety of fields, industries and varieties, which actually helps investors spread investment risks. If you are an individual investor, it is difficult to achieve such a diversified portfolio.

Expert investment

Such as stock and futures trading, it is difficult for ordinary investors to grasp and have no time for long-term attention. Fund managers have more professional research ability and can obtain more stable return on investment for investors. At the same time, fund managers have the advantages of familiarity with investment theory, rich operational experience and extensive information channels, and their profitability is stronger.

Security is guaranteed to a certain extent.

At present, in China, fund assets can only be deposited independently in independent accounts of custodian banks; However, in China, only large banks are qualified to engage in custody business. As custodians of investors' funds, these reputable banks keep the fund assets in strict accordance with laws, regulations and fund contracts to ensure that they are not used for other purposes, and supervise the operation of fund management companies. Even in the worst case, if the fund management company or custodian bank declares bankruptcy, the fund assets will still be protected within the corresponding legal framework.

Information transparency

Fund management companies will disclose the prospectus to investors. Regular reports include semi-annual reports, annual reports, fund portfolio announcements, fund net worth announcements and public prospectus, so that investors can fully understand the operation of the fund.

Strong liquidity

Open-end funds can be purchased and redeemed directly; Closed-end funds can be bought and sold in real time through exchanges; This is time savings deposits, bonds, and real estate investment can not be compared.

Skills of investing in funds

Tip 1: the foundation invests in lazy financial management.

The fund's fixed investment can effectively diversify investment costs and risks through "disciplined" batch investment. In addition, the fixed investment of the fund not only has the effect of forcing investment and gathering sand into towers, but most importantly, the fixed investment of the fund makes investment and financial management not only the patent of the rich, but also the investment of 200 yuan per month possible.

Tip 2: Build a combination that can be attacked and defended.

In the process of financial management, ordinary people should pay attention to the effective collocation of low-risk income varieties such as bond funds and stock funds. At the same time, it is advisable to choose different wealth management products from the same company, and give priority to those fund companies that have fund conversion business. Investors can freely adjust the proportion of stock base and debt base according to market changes, and their redemption cost is lower than that of ordinary funds, so that they can truly attack and retreat.

Tip 3: Pay attention to the cost of online direct selling.

Although the discount rate of online direct selling business is not worth mentioning, if you invest the subscription fee saved for several years, it is also an income that cannot be ignored. It can be seen that in the process of investment and financial management, in addition to looking at long-term performance, we must also learn to haggle over investment costs.

Tip 4: Complete the information and realize two-way interaction.

Each fund company has its own internal magazine, which regularly sends relevant information about the funds it holds to the holders. For investors, they can learn about the dynamics and fund performance of the selected fund company at the first time, and investors can also interact with the fund company in the process of financial management according to specific conditions to solve their doubts.

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