As an international investment carrier, investment companies are conducive to promoting the internationalization of the securities market. 1. What is the nature of an investment company? An investment company is a financial intermediary that pools the funds of individual investors and invests them in many securities or other assets. "Asset concentration" is the core meaning behind securities investment companies. In the investment portfolio established by the investment company, each investor has the right to claim the investment portfolio in proportion to the investment amount. These investment companies provide a mechanism for small investors: they can organize themselves to obtain the benefits of large-scale investment. Second, investment companies have realized the following important functions for investors: filing and management. Investment companies regularly issue management reports to record capital distribution, dividends, investment and principal redemption. At the same time, they can reinvest interest and dividend income for investors. Through the concentration of assets, investment companies enable investors to hold a part of many securities. Individual investors can't operate like big investors, but investment companies enable them to achieve this. Expert management Most (but not all) investment companies have full-time securities analysts and securities managers to operate securities in order to obtain the best investment results. The transaction cost is low because investment companies can save a lot of money on brokerage fees and commissions by conducting large transactions. Third, the business content of an investment company distinguishes its enterprise type (EquityInvestment), which refers to obtaining the shares of the invested unit through investment. Specifically, it means that an enterprise buys shares of other enterprises or directly invests in other units with monetary funds, intangible assets and other physical assets, with the ultimate goal of obtaining greater economic benefits. Creditor's rights investment refers to the investment made to obtain creditor's rights, such as buying corporate bonds and treasury bills, which belong to creditor's rights investment. Investment Co., Ltd. makes this kind of investment not to obtain the surplus assets of other enterprises, but to obtain the interest higher than the bank deposit rate, and to ensure that the principal and interest are recovered on schedule. Investmentinsecurities refers to the investment behavior of investors to obtain dividends, interest and capital gains by purchasing securities and financial derivatives such as stocks, bonds and funds. The above is an introduction to the nature of investment companies. An investment company is a kind of financial intermediary, which concentrates the funds of individual investors and invests them in many securities or other assets.