What Is a Mid-Cap Value Fund?

Special funds are small and medium-sized funds that invest in specific types of stocks or securities. The reason for setting up a special fund is that it is limited by the size of the fund, and the second reason is that the manager believes that certain specific types of securities have growth or have special investment value.

Special fund

Right!
Special funds are small and medium-sized funds that invest in specific types of stocks or securities. The reason for setting up a special fund is that it is limited by the size of the fund, and the second reason is that the manager believes that certain specific types of securities have growth or have special investment value.
Compared with ordinary stock funds, special funds have effectively reduced the scope of investment and are more targeted in selecting investment objects; fund managers can focus their main research and development efforts on established industry sectors, which not only improves investment management The degree of specialization has also reduced management costs to a certain extent.
Taking the US fund industry as an example, the investment fields of more common special funds include high-tech, mass media, health care, finance, public utilities, natural resources, real estate, and so on.
Source channels for special funds
The sources of China's special funds can be divided into:
Formation within the enterprise. Special funds are mainly formed within enterprises. One part is derived from costs, including employee welfare funds, overhaul funds, and renovation funds; the other part is formed by enterprise profit retention, including production development funds, incentive funds, welfare funds, and reserve funds.
State dial-in. The state allocates special appropriations to enterprises for special purposes. Including new product trial production fee, intermediate test fee, main scientific research fee.
Special loans. In order to complete a specific project, the enterprise applies for various special loans from the bank when the special funds are insufficient, including overhaul loans, and renovation loans.
Special payables. During the use of special funds, various payables were temporarily occupied. [1]

IN OTHER LANGUAGES

Was this article helpful? Thanks for the feedback Thanks for the feedback

How can we help? How can we help?