Ivestment fund overview
One: Definition of investment fund
Investment fund can be called common fund either, it¨s a kind of investment way that collect funds of many small amount investors by issuing fund certificates or benefit certificates, then submit them to professional investment organizations to control, and the benefit is shared by investors based on investment rate.
Two: Characteristics of investment fund
1. Professional administration, specialist operation.
2. Centralize investment, decentralize risk.
3. Small amount investment, cheap cost.
4. Strong fluidity, high marketability.
5. Various kinds, more choice.
Three: Types of investment funds
1. According to organization types, investment funds can be classified to contract fund and company fund.
2. According to trade ways, investment funds can be classified to open-end fund and close-end fund.
3. According to investment risk and benefit targets, they can be classified to growth form fund and revenue fund.
4. According to investment targets, they can be classified to stock fund, bond certificate fund, real estate fund, money market fund, noble metal fund, futures fund, option fund and subscription warrant fund
5. According to origins of the investment funds and areas to use, they can be classified to domestic fund, international fund, offshore fund, state fund and global fund.
Four: organization structure of investment funds: for contract investment funds, there are three parties involved: client, mandatory and beneficiary. And for company fund, there are four parties involved: fund company, fund keeper, fund trustee and shareholder.
1.Investor
The Investor is the beneficiary, holding fund stocks, who can also be called shareholder in company fund. The investors have the right to share investment benefits. The investors can require the company to supply open introduction, finance report etc documents materials.
2. Fund administration company
Fund administration company is a company which takes charge of investment administration and daily operation of the fund asset. It undertakes the task of using fund asset to obtain investment benefits, the qualification condition concerns with investment benefit of the investors directly. Fund administration company can not be established except be approved by certificate trade management department of the government according to certificate investment trust act of the state.
3. Fund trustee company
As the trustee of fund asset, fund trustee company is responsible for ensuring safety of the funds, and do fund certificate transaction, currency management and other relative businesses. Meanwhile, it has the right to supervise funds keeper. Funds trustee companies are usually trust companies and banks. |
