Fund rose again Christian Democrats lost again. The rise of foundations is a carnival for foundations, and they have a strong foothold on foot. The fall of the fund is a test for the people at the foundation. If we stick to everything, we’ll gain bystanders get confused while funders are immersed in their own world. What is a fund ? How can this be so magical?
For Xiaobai, first of all, we should make it clear that a fund is a financial product.
A fund, known as a fund in English, is a collective investment model of “shared benefits and shared risks. It refers to the issuance of fund bonds to pool the unequal funds of most uncertain investors in the society in the form of contracts or companies to form a certain scale of trust assets, which are then handed over to specialized investment institutions for dispersion in accordance with the principle of asset portfolios. Investment, and the income obtained is shared by the investor in proportion to the investment, and bears the corresponding risks.
It doesn’t matter if you don’t understand. Do not mind. In big words, we first hand over the excess cash to the fund company . You usually buy funds on Alipay or other platforms. Later, the fund company used the money we gave him to let the fund manager use it to invest in the market. Investments must be profitable and lossy. If the fund manager’s investment is profitable, we will be profitable. If a fund manager’s investment loses, we naturally lose.
Having said that, many people have questions again. Why buy a fund and ask a fund manager to help invest when they have spare cash? Isn’t your own direct investment an investment too.
This is actually easy to understand. The investment act of buying a fund is actually the equivalent of playing a game and seeking practice. It’s easy to understand. Again, we can find this out through the origin of the fund. After the first industrial revolution, Britain’s productive forces developed greatly, colonies and trade spread all over the world, and social and personal wealth increased rapidly. However, due to the excessive accumulation of domestic funds and rising investment costs, many businessmen moved their personal property and funds overseas.
Due to the lack of international investment knowledge and understanding of the overseas investment environment, investors came up with the idea of ​​collecting funds from many investors and entrusting special personnel to operate and manage them. The idea is backed by the UK government. Therefore, the British government set up an investment company to entrust financial experts with professional knowledge to invest on its behalf, so that small and medium investors can share the rich returns of international investment and diversify risks. Thus, the early investment trust companies were born.
Here, after our above description, I believe you have a basic understanding of what a fund is , and you have taken the first step in the world of funds!