Warm up
Questions
- What are mutual fund, pension fund, equity fund and hedge fund?
- What is the difference between them?
- What affects the development of mutual-fund companies?
- What should mutual-fund companies do to restore their fortunes?
Background
mutual fund
An investment vehicle which is comprised of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market securities and similar assets. Mutual funds are operated by money mangers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.
One of the main advantages of a mutual fund is that it gives small investors access to a well-diversified portfolio of equities, bonds and other securities, which would be quite difficult (if not impossible) to create with a small amount of capital. Each shareholder participates proportionally in the gain or loss of the fund. Mutual fund units, or shares, are issued and can typically be purchased or redeemed as needed at the current net asset value per share. 共同基金
pension fund
A Pension fund is a pool of assets forming an independent legal entity that are bought with the contributions to a pension plan for the exclusive purpose of financing pension plan benefits.
Pension funds are important shareholders of listed and private companies. They are especially important to the stock market where large institutional investors like the Ontario Teachers' Pension Plan dominate. 养老金基金
equity fund
Equity funds, which consist mainly of stock investments, are the most common type of mutual fund. Equity funds hold 50 percent of all amounts invested in mutual funds in the United States. Often equity funds focus investments on particular strategies and certain types of issuers. 股票基金
hedge fund
Hedge funds in the United States are pooled investment funds with loose SEC regulation and should not be confused with mutual funds. Certain hedge funds are required to register with SEC as investment advisers under the Investment Advisers Act. The Act does not require an adviser to follow or avoid any particular investment strategies, nor does it require or prohibit specific investments. Hedge funds typically charge a management fee of 1% or more, plus a "performance fee" of 20% of the hedge fund's profits. There may be a "lock-up" period, during which an investor cannot cash in shares. 对冲基金
money market
The market in which short-term loans are arranged between banks, the government, discount houses and accepting houses. The main items of exchange are bills of exchange, Treasure bills and trade bills （商业汇票）. 货币市场，短期资金市场
capital market
A place where deals are made relating to the long-term investment needed by business and public authorities. The money is obtained from private investors, banks, insurance companies, pension funds, etc. 资本市场
