Professional Documents
Culture Documents
Chuong3 TTCK2
Chuong3 TTCK2
3
1. Definition and role of investment fund
1.1. Definition of investment fund
1.2. Role of investment fund
1.1. Definition of investment fund
A fund formed from investors’ capital contributions with the
purpose of earning profits from investing in securities or other
types of investment assets (including real estate), in which
investors do not have daily control over the fund's investment
decisions.
1.2. Role of investment fund
For the economy and stock market:
Investment funds contribute to raising capital for the development of the
economy in general and the development of the primary market in
particular.
Investment funds contribute to stabilizing the secondary market.
Investment funds contribute to universalizing securities investment and
promoting internal resources.
Investment funds operations enhance the ability to mobilize foreign
capital.
For businesses:
Strengthen effective governance
Improve access to long-term capital
1.2. Role of investment fund
For investors:
1. Diversify portfolio, minimize risks
2. Professional investment management
3. Low operating costs
4. Easy withdrawal of investment capital and sometimes be able to
take privileged participation
5. Wider selection
• Public fund
By participant • Member fund
• Venture fund
By operational • Growth Fund
objectives • Secure fund
• Stock fund
By investment • Mixed fund
• Money market fund
object • Bond fund
• Corporate fund
By legal nature • Trust fund