Foundations are divided into public fund-raising foundations and foundations may not be public fund-raising. Public foundations are divided into national public foundations and local public foundations according to the geographical scope of fundraising.
The establishment, maintenance or development of a cause and reserve funds or special grants for the management of the institution. Generally private non-profit organizations. Purpose is to promote the development of social science, culture and education and social welfare assistance and other public welfare undertakings through gratuitous funding. Foundation funds have a clear purpose and use. Foundations flourished in the 20th century. the Carnegie Foundation of 1900 and the Rockefeller Foundation are the most famous. the Ford Foundation, established in 1936 and funded by the Ford family, has billions of dollars. It has become the largest foundation in the world. Other large foundations around the world include the John Guggenheim Memorial Foundation, the Danforth Foundation, the Kellogg Foundation, etc. After the 1980s, China's foundations also gained significant development, and the State Council executive meeting adopted the Measures for the Administration of Foundations in September 1988, which set out a series of regulations on the nature of foundations, conditions for their establishment, fundraising methods, and the use and management of funds. The foundations that have been established in China include the China Foundation for the Aged, the China Disabled Persons' Welfare Foundation, the China Welfare Foundation, the Soong Ching Ling Foundation, and the China Youth Development Foundation.
Funds are divided into a broad and a narrow sense. In a broad sense, a fund is a collective term for institutional investors, including trust and investment funds, unit trusts, provident funds, insurance funds, retirement funds, and funds of various foundations. Funds in the existing securities market, including closed-end funds and open-end funds, are characterized by income-generating functions and value-added potential. Analyzed from an accounting perspective, fund is a narrow concept meaning money with a specific purpose and use. The fund is formed because the contributors of the government and institutions do not require investment return and investment recovery, but require that the funds be used for the specified purposes according to the law or the contributors' wishes.
We now say fund usually refers to securities investment funds.
Security Investment Funds
Security investment funds are an indirect way of investing in securities. By issuing fund units, fund management companies concentrate investors' funds, which are held in trust by fund custodians (i.e. qualified banks), and fund managers manage and utilize the funds to engage in investment in stocks, bonds and other financial instruments, and then **** bear the investment risks and share the returns. According to different criteria, securities investment funds can be divided into different categories:
Based on whether fund units can be added or redeemed, they can be categorized into open-end funds and closed-end funds. Open-end funds are not listed and traded, and are generally subscribed and redeemed through banks, with an unfixed fund size; closed-end funds have a fixed duration, during which the fund size is fixed, and are generally listed and traded on stock exchanges, with investors buying and selling fund units through the secondary market.
Securities investment funds in the United States known as "*** with the fund", the United Kingdom and Hong Kong Special Administrative Region of China known as the "unit trust funds", Japan and Taiwan, China, known as the "securities investment trust funds "
Open-end fund
is a variable issuance, the total number of fund shares (units) can be increased or decreased at any time, investors can be quoted by the fund in the fund manager's designated place of business to subscribe or redeem the fund. Compared with closed-end funds, open-end funds are particularly suitable for small and medium-sized investors as they are characterized by no restriction on the number of shares issued, purchase and sale prices based on net asset value, trading over the counter and relatively low risk.
The history of the development of the world's funds is from the closed-end funds to the history of open-end funds. Take the most mature fund market in the United States as an example. In September 1990, the U.S. open-end fund **** 3,000, assets worth 1 trillion U.S. dollars; and closed-end fund only 250, assets worth 60 billion U.S. dollars. By 1996, the U.S. open-end fund assets of 3,539.2 billion U.S. dollars, closed-end fund assets of only 1,285.5 billion U.S. dollars, the ratio of the two reached 27.54:1; in 1940, the ratio of the two was only 0.73:1. In Japan, closed-end funds accounted for the vast majority of closed-end funds before 1990, open-end funds are in a subordinate position; but the situation in the 1990s after the fundamental changes, open-end fund assets to closed-end fund assets of 1,000 million U.S. dollars. The open-end fund assets reached about twice the assets of the closed-end fund.
In Hong Kong, Thailand, Taiwan, Singapore, the Philippines and other Asian countries and regions that developed investment funds earlier, the beginning of the development is also the closed-end fund is dominant, and gradually transitioned to the current stage of coexistence of the two types of fund forms. From a world perspective, the world's open-ended investment funds in 1990, the net asset balance of 2,355.4 billion U.S. dollars, to 1995 has jumped to 5,340.7 billion U.S. dollars.
Open-ended funds have gradually become the mainstream of the world's investment funds.
The majority of investment funds in the world started out as closed-end. This is due to the fact that in the early stage of investment fund development, the handling fee for buying and selling closed-end funds was much lower than that for redeeming shares of open-end funds. From the point of view of fund management, since there is no pressure to request redemption of beneficiary certificates, you can make full use of investor funds to implement its investment strategy in order to maximize the benefits.
Closed-end funds
Close-end funds
are trust funds, which are investment funds whose sizes are determined prior to issuance, are fixed for a specified period of time after completion of issuance, and are traded on the stock market.
Since closed-end funds are traded on the stock exchange in the form of competitive bidding, the trading price is affected by market supply and demand and does not necessarily reflect the net asset value of the fund, i.e., relative to its net asset value, the trading price of closed-end funds has a premium, discount phenomenon. Foreign closed-end fund practice shows that its trading price often exists first premium and then discount price fluctuation law. From the operation of our closed-end fund, no matter how the fundamentals of the situation changes, our closed-end fund trading price trend has not been able to get out of the first premium, discount price fluctuation law.
-According to the different organizational forms, it can be divided into corporate funds and contractual funds. Fund through the issuance of fund shares to set up investment fund company form of establishment, usually known as company-type fund; by the fund manager, fund custodian and investors through the fund contract set up by the three parties, usually known as contractual fund. At present, China's securities investment funds are contractual funds.
Corporate-type funds
Also called **** the same fund, refers to the fund itself for a joint-stock limited company, the company through the issuance of shares or beneficiary certificates to raise funds. By purchasing shares in the company, investors become shareholders of the company and receive dividends or bonuses on the shares and share in the proceeds of their investment.
Characteristics
1.*** with the fund, the form of joint-stock companies, but different from the general joint-stock companies, its business is focused on engaging in securities investment trust.
2.*** with the fund of the capital of the company's legal person, i.e. shares.
3.***The structure of the fund is the same as that of a normal joint-stock company, with a board of directors and a general meeting of shareholders. The assets of the fund are owned by the company, and the investors are the shareholders and ultimate holders of the company's assets. The shareholders exercise their rights at the general meeting according to the size of the shares they own.
4. According to the articles of association, the board of directors is responsible for the safety and growth of the fund's assets. For ease of management, *** same funds often have a fund manager and a custodian. The fund manager is responsible for the investment management of the fund's assets, and the custodian is responsible for supervising the fund manager's investment activities. The custodian may (not required to) open a bank account and register the fund assets in its own name. In order to clarify the rights and obligations of both parties, there is a contractual relationship between the *** with the fund company and the custodian, whose duties are set out in the "Custodian Agreement" signed between him and the *** with the fund company. If something goes wrong with the *** Tong Fund, the investor has the right to go directly to the *** Tong Fund Company.
Contractual fund
Also known as unit trust funds, refers to the specialized investment institutions (banks and enterprises) **** with the capital to form a fund management company, fund management company as a principal through the signing of a "trust contract" with the trustee in the form of the issuance of beneficiary certificates - "fund unit holding certificates" to raise the community's idle funds.
Characteristics
The unit trust is a document named trust deed and the formation of a manager company, in the organizational structure, it does not have a board of directors, the fund manager company as a commissioned by the company to set up the fund, or then hire a manager for the management of the fund's management and operation, and usually designate a securities company or an underwriting company to deal with the issue of beneficiary certificates - the fund unit holders. The company usually appoints a securities company or an underwriting company to handle the issuance, purchase, sale, transfer, trading, profit distribution, income and principal repayment and payment of the beneficiary certificates - the fund's single holding certificates.
The trustee is appointed by the fund manager and registers and opens accounts for the fund in the name of the trustee or trust company. The account of the fund is completely independent of the account of the fund custodian company. Even if the fund custodian company closes down due to mismanagement, its creditors are not allowed to utilize the assets of the fund. Its duties are to be responsible for the management and custodial disposal of the trust property, to supervise the investment work of the fund managers, to ensure that the fund managers comply with the investment requirements set out in the public prospectus, and to ensure that the investment portfolios adopted by them are in compliance with the requirements of the trust deed. The trustee is responsible to investors for claims in the event of problems with the unit trust.
-These are categorized as growth, income and balanced funds depending on the risk and return of the investment.
-Depending on the object of investment, they can be categorized into stock funds, bond funds, money market funds, futures funds and so on.
Stock Fund
It is an investment fund that invests in stocks and is the main type of investment fund. The main function of stock funds is to concentrate the small investments of mass investors into large sums of money. It invests in different stock portfolios and is the main institutional investor in the stock market.
Classification
Stock funds can be divided into preferred stock funds and common stock funds according to the object of investment, preferred stock funds can obtain stable income. It is less risky. Income distribution is mainly dividends; common stock fund is currently the largest number of a fund, the fund to the pursuit of capital gains and long-term capital appreciation for the purpose of the risk is greater than the preferred stock fund. According to the degree of diversification of fund investment, the stock fund can be divided into general common stock funds and specialized funds, the former refers to the fund assets diversified investment in various types of common stocks, the latter refers to the fund assets invested in certain special industry stocks, the risk is higher, but may have better potential returns. Equity funds can also be categorized into capital appreciation funds, growth funds and income funds according to the purpose of fund investment. Capital Appreciation Funds invest primarily for the purpose of pursuing rapid capital growth, which leads to capital appreciation, and these funds are high risk and high yielding. Growth funds invest in common stocks that have the potential to grow and generate income with a certain degree of risk. Equity-income funds invest in stocks issued by companies with stable growth prospects and pursue stable dividend distributions and capital gains, and this type of fund carries little risk and little income.
Characteristics
1. Compared with other funds, equity funds have diversified investment targets and investment objectives.
2. Compared with investors investing directly in the stock market, equity funds have diversified risks. Lower fees and other characteristics. For the average investor, personal capital is, after all, limited, it is difficult to reduce investment risk by diversifying the types of investment. But if you invest in stock funds, investors can not only share the returns of various types of stocks, but also has been able to diversify the risk of various types of stocks by investing in stock funds, greatly reducing the investment risk. In addition. Investors invested in stock funds, but also can enjoy the relative advantages of the fund large investment in the cost, reduce investment costs, improve investment efficiency, and obtain the benefits of economies of scale.
3. From the point of view of asset liquidity, equity funds are characterized by strong liquidity and high liquidity. Equity funds invest in stocks with excellent liquidity, and fund assets are of high quality and easy to realize.
4. For investors, equity funds are stable and profitable. Generally speaking, the risk of stock funds is lower than that of stock investments. Thus the returns are more stable. Not only that, after the closed-end stock fund is listed, investors can also get the bid-ask spread by trading on the exchange. Upon expiration of the fund, investors enjoy the right to distribute the remaining assets.
5. Stock funds also have the function and feature of financing in the international market. As far as the stock market is concerned, the degree of internationalization of its capital is lower than that of the foreign exchange market and bond market. Generally speaking, each country's stocks are basically traded in their own markets, and stock investors can only invest in stocks listed in their own countries or in the stocks of a few foreign companies listed locally. In foreign countries, stock funds have broken through this restriction, and investors can invest in the stock markets of other countries or regions through the purchase of stock funds, thus giving a positive impetus to the internationalization of the securities market. From the current situation of overseas stock markets, a large part of the stock fund investment object is foreign company stocks.
Fund indices
Fund indices are indices that react to the overall changes in the prices of closed-end funds listed on the Shanghai Stock Exchange and the Shenzhen Stock Exchange
-Depending on the object of investment, securities investment funds can be categorized into: equity funds, bond funds, money market funds, hybrid funds, etc. More than 60% of the fund assets are invested in stocks. For equity funds; more than 80% of fund assets invested in bonds, bond funds; only invested in money market instruments, money market funds; invested in stocks, bonds and money market instruments, and the proportion of stock investment and bond investment does not comply with the provisions of the bond, stock funds, hybrid funds. From an investment risk perspective, several types of funds pose different risks to investors. Among them, equity funds have the highest risk, money market funds have the lowest risk, and bond funds have the middle risk. The same variety of investment funds can have different risks due to different investment styles and strategies. For example, equity funds can be further categorized according to the degree of risk: balanced, stable, index, growth, and growth. Of course, the greater the degree of risk, the higher the rate of return will be correspondingly; the risk is small, the return is correspondingly lower.
Introduction of open-ended fund buying and selling:
◆Preparation process
Before investors buy the fund, they need to carefully read the prospectus of the fund, the fund contract and the account opening procedures, trading rules and other documents, and the fund sales outlets should be equipped with the above documents, so as to prepare for the investors to check at any time.
Individual investors should bring their debit cards from their correspondent banks, valid ID cards (ID card, military ID card or armed police ID card), while institutional investors need to bring their original business licenses, institutional code certificates or registration certificates, as well as stamped copies of the above documents, authorization letters, and ID cards of the person handling the transaction, as well as photocopies of these documents.
Bringing the prepared materials, customers fill out the fund business application form at the bank's counter outlets, and after filling out the form, they receive the business receipt, individual investors also receive the fund trading card, and two days later on the same day of the fund business, they can get the business confirmation letter at the counter. After receiving the business confirmation, the unit or individual can engage in fund purchase and redemption.
◆How to buy
After completing the preparation for opening an account, people can choose their own time to buy funds. Individual investors can bring their debit cards and fund transaction cards from the agent banks to the counter of the outlets of the agent to fill in the application form for fund transaction (or the reserved seal for institutional investors), and they must submit the application before 15:00 on the day of purchase, which will be accepted by the counter, and receive the receipt of the fund business. Two days after the fund business is processed, investors can print the business confirmation at the counter.
◆How to redeem
When an investor intends to redeem the fund in his hand, he can bring the debit card of the account opening bank and the fund transaction card, and fill in and submit the transaction application form before 3:00 p.m. Also, after the acceptance by the counter, the investor can inquire after 5 days that the redemption fund has arrived at the account.
◆How to withdraw
Transaction investors who need to withdraw a transaction can do so before 15:00 on the day of the transaction by bringing their fund trading cards and bank debit cards and filling out a transaction request form at the counter stating that they are withdrawing the transaction. If after 15:00, some banks can book the transaction according to the day's license price, and the transaction will be carried out on the second working day.
Trading funds on the Internet
At present, almost all banks and fund management companies support trading funds on the Internet.
Recently, I have seen a lot of netizens who often ask what is going on with the fund, as if the fund is a very complex and difficult to understand, and said that the fund knowledge articles recommended to read can not be read. Therefore, I often think of how to make these friends in the shortest possible time to understand what the fund is, for everyone to show that these funds are not mysterious, so the idea was born, try to explain as much as possible in layman's terms what is the fund, I hope that these friends as soon as possible to understand the fund to help.
Assuming that you have a sum of money you want to invest in bonds, stocks and shares a la this kind of securities for value-added, but they have no energy, no expertise, and three of the money is not too much, it is thought with the other 10 people in partnership to fund, to hire a master investor (theoretically, higher than I am still a little), the operation of the combined assets of all the investment in value-added. But here, if more than 10 investors are with the investment master at any time to deal with, that thing is not a mess, and then elected one of the most knowledgeable lead to do this. Regularly from the group of assets by a certain percentage of the commission to him, by him on behalf of the payment to the master of the labor fee compensation, of course, he led the effort to open up large and small things, including running errands, the risk of things to the master of the reminder of the point at any time, regularly to the group to announce the profit and loss of the investment situation, and so on, can not be busy for nothing, the money in the commission also has his labor fee. These things are called partnership investment.
This model of partnership investment will be enlarged 100 times, 1000 times, is the fund.
This private private partnership investment activities if the capitalists in the establishment of a complete contract between the contract, is a private fund (in our country has not been recognized by the relevant regulations of the national financial industry supervision).
If this partnership investment activities through the national securities industry management department (China Securities Regulatory Commission) for approval, allowing the activities of the lead operator to the public offering to absorb investors to join the partnership funding, which is the issuance of public funds, that is, we are now common funds.
What is the role of the fund management company? The fund management company is the lead operator of this partnership investment, but it is a company legal person, the qualification to be approved by the China Securities Regulatory Commission. Fund companies and other fund investors as well as one of the partnership contributors, on the other hand, because it leads the operation, from the partnership out of the assets of a certain percentage of the annual withdrawal of labor fees (called fund management fees), for the investor on behalf of the hiring of management responsible for the manipulation of the investment masters (that is, the fund manager), and to help the masters to collect information and do research to play the hand of the people, the regular announcement of the fund's assets and returns. Of course the fund company these activities are approved by the Securities and Exchange Commission.
For the safety of the assets of the partnership, not to be stolen by the fund company, the lead operator of the misappropriation, the China Securities Regulatory Commission regulations, the fund's assets can not be placed in the hands of the fund company, the fund company and the fund managers are only in charge of the transaction operation, can not touch the money, the bookkeeping and management of the money to look for a person who is good at this matter and high credit responsible for the role of course, not the bank. So these contributions (that is, the fund assets) is placed in the bank, and built a specialized account by the bank bookkeeping, known as fund trusteeship. Of course, the bank's labor costs (called the fund trustee fee) must also be from the assets of the partnership in proportion to the draw a little bit of annual payment. Therefore, the assets of the fund are relatively only subject to the risk of being lost due to the bad operation of those masters, and basically there is no risk of being stolen or misappropriated. From a legal point of view, even if the fund management company closes down or even if the custodian bank has an accident, the people who collect debts from them have no right to touch the assets of everyone's fund account, so the safety of the fund's assets is very secure.
If this public fund in the stipulated period of time to raise investors after the end of the proclamation of the establishment (the state regulations at least to reach 1,000 investors and 200 million yuan in size to be established), stop and no longer absorb other investors, and agreed that no one who can not be withdrawn from the withdrawal of funds in the middle of the withdrawal of funds, but later to a certain year and a certain month so far, all of us are even if the account of the dispersal of the burden of sharing the baggage, halfway through the realization that you want to realize, only to find others to sell out. I'm not sure if you're looking for a new one, but I'm not sure if you're looking for a new one.
If this kind of public fund after the announcement of the establishment, still welcome other investors at any time to contribute to the partnership, at the same time also allows everyone at any time to partially or completely withdraw their own funds and due to the proceeds, which is the open-ended fund.
Whether it is a closed-end fund or an open-end fund, if in order to facilitate people to buy, sell and transfer, they find the exchange (securities market) as a place to list the fund, and freely trade it among investors at the market price, it is a listed fund.
Securities investment fund
Securities investment fund is a kind of benefit *** enjoy, risk *** share of investment in securities of the pooled investment management, that is, through the issuance of units of the fund, the concentration of investor's funds, by the fund custodian trustees (generally reputable banks), by the fund manager (i.e., the fund management company) to manage and utilize the funds, to engage in the stocks, bonds and other financial instruments investment. The fund manager (i.e. fund management company) manages and utilizes the funds to invest in stocks, bonds and other financial instruments. Fund investors enjoy the benefits of securities investment and also bear the risks arising from investment losses. For the time being, all of our funds are contractual funds, a form of trust investment.
Securities investment fund features:
1, expert financial management is an important feature of fund investment. Fund management companies are equipped with investment experts, generally have a deep theoretical background of investment analysis and rich practical experience, with scientific methods to study stocks, bonds and other financial products, portfolio investment, risk avoidance. Accordingly, each year, the fund management company will withdraw the management fee from the fund assets, used to pay for the company's operating costs. On the other hand, the fund custodian will also withdraw the custodian fee from the fund assets. In addition, open-ended fund holders need to pay subscription fees, redemption fees and switching fees directly. Holders of listed closed-end funds and listed open-end funds have to pay trading commissions when they buy and sell fund units.
2, portfolio investment, risk diversification. By pooling the funds of many small and medium-sized investors to form a strong strength, securities investment funds can simultaneously diversify their investments in many kinds of stocks, dispersing the risk of concentrated investment in individual stocks.
3. Convenient investment and high liquidity. Securities investment fund minimum investment starting point requirements are generally low, can meet the needs of small investors for securities investment, investors can decide according to their own financial strength to the amount of investment funds. Most of the securities investment funds have strong liquidity, making it very convenient for investors to recover their investments. Our country also gives tax exemption to the people's fund investment income.
Attached:Some of the problems related to securities funds.
What are subscription and subscription fees for funds?
It is the fee you have to pay when you invest in the partnership, because the fund company to publicize the activities of absorbing investors is to spend a lot of money, these costs naturally can not he a family out, and in addition, by raising the cost of your partnership to reduce the desire to leave soon after your partnership.
What is a fund redemption fee?
It's the fee you pay when you withdraw your investment and earnings, for reasons similar to those above. Another one is that when someone withdraws and walks away, the fund may have to sell some bonds and stocks in order to give you back your cash, which is an unfavorable move for the fund's assets and adversely affects the interests of the other non-withdrawing partners, so it lets you leave a little bit of the fee behind as compensation.
What is a fund's switching fee?
It is the same fund company operates a number of funds, you hold one of the funds, you want to change this fund according to the same number of assets into another fund operated by the fund company, should be delivered to the fund company to convert the fee, the reason is also the same as the last two, mainly to increase the cost of your changes, do not want to let you change frequently.
What are fund trading commissions?
It is the labor fee charged to you by the business department of the securities company that provides you with trading services when a listed fund is transferred on the exchange market.
Why are there so many types of securities investment funds?
This is because there are differences in the main investment directions and investment targets set by the different funds themselves.
Equity funds are those that invest most of their money in the stock market;
Bond funds are those that invest most of their money in the bond market;
Mixed funds are those that invest part of their money in equities and part of their money in bonds depending on the situation (of course, this investment ratio can be changed and adjusted), or even part of their money can be invested in bonds according to prior regulations.
Money market funds are funds that invest all of their assets only in short-term securities of various types in the money market (which are very low-risk but also low-yielding).
These funds are, in roughly ascending order of investment risk, equity funds, hybrid funds, bond funds, and money market funds.
Because of the different levels of risk, so investors should be based on their own risk tolerance to choose the level of risk suitable for their own fund investment into the partnership, but also through the low-risk funds, medium-risk funds and high-risk funds are invested in a part of the approach to diversify the risk and balance the level of return, this behavior is called investment portfolio.
Different funds are labeled by their names as "growth", "value", "sector", "blue chip", "small cap", "blue chip" or "small cap". ", "small-cap", "cyclical", "consumer goods" and so on, is their main investment strategy style labeled in the name so that investors At a glance, of course, does not rule out part of the fund just to find a good name entry point so that the China Securities Regulatory Commission easily approved the establishment.
Real estate funds
Funds also specialize in real estate investment in real estate funds, specializing in futures and options investment in futures and options funds, specializing in investment in the gold market gold funds, specializing in investment in industrial industry industry funds. These funds are not many investment opportunities for people who are new to fund investment, first get through the above several of the most common securities fund and then say.
The fund is an indirect way of investing in securities. Fund management companies through the issuance of fund units, the concentration of investor funds, by the fund custodian (i.e., qualified banks) custodian, by the fund manager to manage and use the funds, engaged in stocks, bonds and other financial instruments investment, and then **** bear the investment risk, share the return. According to different criteria, securities investment funds can be divided into different categories:
--- According to whether the fund units can be added or redeemed, they can be divided into open-ended funds and closed-ended funds. Open-end funds are not listed and traded, and are generally subscribed and redeemed through banks, with an unfixed fund size; closed-end funds have a fixed duration, during which the fund size is fixed, and are generally listed and traded on stock exchanges, with investors buying and selling fund units through the secondary market.
--- According to the different organizational forms, it can be divided into corporate funds and contractual funds. Fund through the issuance of fund shares to set up an investment fund company in the form of the establishment, usually known as corporate-type funds; by the fund manager, fund custodian and investors through the fund contract set up by the three parties, usually known as contractual funds. At present, China's securities investment funds are contractual funds.
--- According to the different investment risks and returns, they can be categorized into growth, income and balanced funds.
--- According to the different investment objects, they can be divided into stock funds, bond funds, money market funds, futures funds and so on.
Methods of fund purchase and categorization
Buying a fund is very simple, it can be traded in the securities hall, i.e., bought and sold in the secondary market, just like ordinary stock investment. You can also subscribe through the bank selling point in cooperation with the fund, many banks have fund sales, ICBC and CCB. If you want to buy you can ask in detail about the relevant fees, interest rate than; and then study research fund management company's internal situation and past performance.
Growth funds, is the pursuit of long-term fundamental gains as the main objective. Investments are focused on stocks with better performance and surplus outlook and active market performance. This type of fund chases profits, rises and falls with the market and has a relatively high portfolio turnover rate. This type of fund has a low annual "benefit distribution" and focuses on maximizing long-term capital appreciation. We can use growth funds to accumulate future retirement, children's education, purchase real estate funds, etc., suitable for younger or higher affordability.
Income funds, on the other hand, emphasize the pursuit of fixed and stable income. This type of fund chooses investment objectives can bring fixed income of marketable securities, such as bonds, bills, high-performance stocks and so on. This type of fund has a lower risk of losing principal and a slightly better investment return than regular bank savings. This type of fund is very suitable for some retirees or those who wish to receive a fixed income after investing.
Balanced funds, which are between growth and income funds, diversify their investments into stocks and bonds, hoping to strike a balance between capital growth and fixed income. It can meet the requirements of people who are unwilling to take risks and have relatively conservative personalities but still want to effectively accumulate a long-term fund.
The investment objects of the fund are: stock fund, bond fund, currency fund, gold fund, futures fund, option fund, stock index fund, foreign exchange fund and so on.
To invest in the region, there are: single-country funds, regional funds, global funds (also known as international funds).
Fund investment return formula:
M=a(1+x)[-1+(1+x)n]/x, where M is the expected return, a for the amount of each period of investment, x for a period of return, n for the number of periods of investment (the formula for the nth power).