What does fund mean? Many novices who study financial management don't know what fund means? The following is a brief introduction to the concept of the fund, which we hope will help you understand the fund.
We all know that stocks have the highest return on investment in the market at present, and they are the only assets that can defeat inflation. So we should try to buy more stock assets to get more returns. But the risk of direct investment in stocks is also very high. Is there any suitable tool that can allow us to enjoy the high returns of stocks and also accept the risk? This tool is called fund.
The concept of the Fund: The fund is an investment tool, which means that the investor's money is handed over to a professional fund company for management. If the fund company makes money, we can also make money. If the fund company loses money, we also have to bear the loss.
In fact, we are exposed to many funds in our life, such as Yu'e Bao, which is a kind of money fund. The five insurances and one fund that we office workers pay every month, and the state collects the five insurances and one fund to establish active pension, active social security, etc. These are funds.
Funds are very large assets, but also have different forms, including public funds, private funds, pension funds, social security funds, national sovereign funds, etc. Among so many fund types, the one that our investors contact most is public funds.
The above is an introduction to what funds mean. I wonder if you have a deeper understanding of funds? For newcomers who are new to financial management, they must have a deep understanding of the concept of each financial term, otherwise they may lose money.
