What does an investment company do
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. 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.
According to the business content of the investment company, it can be divided into two types: equity investment 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.
What do investment companies make money from?
(1) project investment, mainly intermediary profits, will be part of the project joint venture or subcontracting, or the introduction of qualified enterprises, so that investment management co., Ltd. will get a good return.
(2) Venture capital. This mode of making money is actually to provide investment services for some customers and bring some funds into some risky investments, such as stocks and futures. Generally speaking, investment management companies charge transaction fees.
(3) Project financing and investment management, mainly through the reasonable arrangement of the project, reasonable resource allocation for the enterprise, reasonable business model analysis for the enterprise, and charging certain working expenses.
(4) strategic planning and asset restructuring, but this requires a relatively large-scale investment management company, and the small one can't be inserted at all, and it doesn't have this qualification.
⑤ Financing listing and private equity financing need the continuous participation of large group investment management companies. Small investment management companies have no opportunities, but of course they make money and are highly efficient.
So much for the investment company. In fact, in my personal opinion, if individuals want to invest but choose an investment company, it is best to investigate the background and strength of the investment company. Some large investment companies and powerful companies can ensure the safety of funds.