1. Trading mechanism:
Fund is a collective investment tool, which is managed by a professional fund management company by pooling the funds of many investors. The fund mainly invests in stocks, bonds and money market instruments. And the investment goal is to obtain a long-term and stable return on investment. The transaction of funds is relatively simple, and investors can purchase and redeem through fund companies, banks, brokers and other channels.
Futures is a derivative tool. By signing a forward contract, both parties agree to buy or sell goods or financial assets at a specific price at a specific time in the future. The trading mechanism of futures is complex, and it adopts the margin system and two-way trading, which is risky. Futures can be bought and sold on futures exchanges, such as Chicago Mercantile Exchange (CME) and Shanghai Futures Exchange.
2. Risk degree:
The risk of funds is relatively low, because funds usually invest in multiple assets to reduce the risk of a single asset. In addition, funds are managed by professional fund management companies, which can help investors reduce investment risks.
The risk of futures is high, because futures adopt margin trading system, which has leverage effect and may lead to the risk that investors lose more than the principal. In addition, futures prices are influenced by many factors, such as supply and demand, policies and economic environment. And the price fluctuates greatly, further increasing the risk.
3. Investment objectives:
The investment targets of the Fund are mainly stocks, bonds and money market instruments. And the investment goal is to obtain a long-term and stable return on investment. Funds can be divided into stock funds, bond funds, mixed funds and money market funds to meet the needs of different investors.
The main investment targets of futures are commodities and financial assets, such as crude oil, gold and stock index. Futures contracts are highly standardized, so both parties need not worry about each other's credit risk, which reduces transaction costs.
In short, there are significant differences between funds and futures in trading mechanism, risk degree and investment target. The fund has low risk and is suitable for investors who pursue long-term stable return on investment; Futures are risky and suitable for investors with certain risk tolerance. When making investment decisions, investors need to choose appropriate investment tools according to their risk tolerance and investment objectives.