The difference between a fund account and a securities account

Mondo Finance Updated on 2024-01-29

Accounts and accounts are important account types for investors to invest and trade their funds. Although both involve the operation of funds and the conduct of transactions, there are some significant differences in their nature, function and mode of operation.

1. Nature and Definitions.

*Account refers to the account in which the investor buys and holds ** shares. It is an investment tool composed of professional managers in the form of pooled funds, investing in a variety of financial assets. An account is an account opened by an investor at a management company or a sales agency for subscribing, redeeming and holding shares.

An account is an account in which an investor trades. Including various financial instruments such as bonds, bonds, etc., the account is an account opened by investors in the company for buying, selling, and holding.

2. The difference between function and use.

1.* Features of the account:

1) Subscription and redemption: Investors can subscribe for ** shares from ** companies or sales agencies through ** accounts, and can redeem ** shares at any time according to their own needs;

2) Dividends and dividend reinvestment: **The account can receive **dividends**, or you can choose to reinvest the dividends to buy more **shares, so as to achieve capital appreciation;

3) Regular investment: Investors can set up a plan to purchase ** shares on a regular basis to achieve regular investment.

2.* Features of the account:

1) Trading: Investors can buy and sell **, bonds and ** and other ** varieties through **account;

2) Dividends and interest income: **Account can receive dividends and interest income from **, bonds, etc.**;

3) Trading risk management: Investors can manage risk in the ** account according to their own risk appetite and investment goals, such as setting trading strategies such as take-profit and stop-loss.

3. Differences in operation methods.

1.*How the account works:

1) Purchase method: Investors can purchase ** shares through bank counters, online banking, ** sales agencies and other channels;

2) Redemption method: Investors can redeem the ** share by applying for redemption

3) Fund settlement: fund settlement is implemented between the investor's ** account and the bank account.

2.*How the account works:

1) Transaction entrustment: Investors can send buying and selling entrustment to ** company through ** entrustment, Internet entrustment, etc.;

2) Transaction matching: **The company matches the investor's buying and selling entrustment with the corresponding entrustment in the market

3) Fund settlement: After the transaction of the ** account, the delivery and settlement of the funds and ** are carried out by the ** company.

To sum up, ** account and ** account differ in nature and function. The account is mainly used to buy and hold shares, and is functionally more focused on the investment and management of funds**The account is mainly used for buying and selling**, and the function is more focused on the implementation of transactions and risk management. At the same time, there are also certain differences in the way of operation, and investors need to choose the appropriate account type according to their own investment needs and goals when opening an account.

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