To understand the foundation of fund financing, we must first understand what a fund is. Fund is a kind of collective securities investment, which has * * * income and * * risk. By issuing fund shares, investors' funds are managed centrally by fund custodians, and fund managers manage and use funds to invest in financial instruments such as stocks, bonds, foreign exchange and currencies, so as to obtain investment income and capital appreciation.

According to the different modes of fund operation, it can be divided into open-end funds and closed-end funds; According to different organizational forms, it can be divided into corporate funds and contractual funds; According to the difference of investment and income, it can be divided into growth, income and balanced funds; According to different investment objects, it can be divided into stock funds, bond funds and money funds.