Jinjiwo: What is a futures fund? What does futures fund mean?

When it comes to funds based on different investment targets, we can usually divide them into stock funds, mixed funds, bond funds, and money market funds. Jinjiwo points out that in fact, funds can be divided into more than the above four types based on different investment targets. Today, we will introduce to investors funds with targets other than stocks, bonds, etc——futuresFund.

Futures fund, also known as futures investment fund. Jinjiwo pointed out that there are currently two definitions for futures funds:


In a broad sense, futures funds, also known as managed futures, refer to an industry composed of professional fund managers known as commodity trading advisorsCTAThey use global futures andoptionAs an investment medium, the market provides professional fund management to investors who want to participate in the commodity market, including physical commodities and futures, forward, and option contracts of financial products.


Narrowly speaking, futures funds refer to public futures funds, which are a new type of fund specialized in investing in the futures market. Their specific operational process is similar to that of mutual funds.


Jinjiwo pointed out that futures funds were first born in1949In the United States, after so many years of development, there are currently three types of futures funds: public futures funds;Secondly, private equity futures funds;The third is personal management of futures accounts, which face different types of investors.


It should be noted that futures funds are not a type of mutual fund that we often refer to. These funds have their own unique organizational structure during trading operations. A typical futures fund participant includes commodity fund managers, trading managers, commodity trading advisors, futures commission merchants, custodians, fund investors, etc. Each participant has a different identity and is interconnected.


Nowadays, futures funds are not only favored by individual investors, but also by institutional investors. So why is this new type of foundation so popular?Regarding this, Jinjiwo stated that this is because futures funds have characteristics and functions that other investment tools do not have, mainly including the following points:


1It has dual characteristics of futures trading and funds. The futures market is different from the stock market and fund market. Due to the high risk of futures, it provides a convenient and fast way for small and medium-sized investors to enter the futures market.


2Improve and optimize traditional investment portfolios. For institutional investors, futures funds provide them with excellent tools to improve and optimize their investment portfolios.


3It can diversify risks. Futures investment has a margin trading system, which amplifies investment risks and is therefore a higher risk investment method than stock and bond investments. People often believe that futures investment funds also have higher risk than securities funds. In fact, since futures funds do not invest in the stock market, when the stock market encounters systemic risks and falls sharply, futures funds of the same period will not be affected or even perform better, thus achieving the goal of risk diversification.