Contract fund, also known as unit trust fund, refers to a fund management company established by a specialized investment institution. As a client, the fund management company issues a beneficiary certificate-"certificate of fund unit holding" by signing a "trust deed" with the trustee to raise idle funds in society. Unit Trust is a management company established by a document named trust deed. In terms of organizational structure, it has no board of directors. The fund manager company sets up the fund itself as the entrusting company, and employs the manager to manage the operation and operation of the fund by himself or again. Usually, securities companies or underwriting companies are responsible for issuing, trading, transferring, trading, profit distribution, repayment and payment of benefits and principal and interest. The trustee accepts the entrustment of the fund manager company to register and open an account for the fund in the name of the trustee or trust company. The fund account is completely independent of the account of the fund custody company. Even if the fund custody company goes bankrupt due to poor management, its creditors cannot use the assets of the fund.
Its duties are to manage, keep and dispose of the trust property, supervise the investment work of the fund manager, and ensure that the fund manager abides by the investment regulations listed in the prospectus, so as to make its investment portfolio meet the requirements of trust deed. When there is a problem with the unit trust fund, the client is responsible for claiming compensation from the investor. Balanced fund refers to a fund whose investment goal is not only to obtain the current income, but also to pursue the long-term appreciation of the fund assets, and to disperse the funds into stocks and bonds to ensure the safety and profitability of the funds. A mutual fund that invests in stocks and bonds in a diversified way. Usually, when fund managers are bearish on the market outlook, they will increase the proportion of bond investment with strong resilience; When fund managers are optimistic about the market outlook, they will increase the proportion of stock investment with more capital gains and profit opportunities. Balanced fund is a fund that pursues both long-term capital appreciation and current income. These funds mainly invest in bonds, preferred stocks and some common stocks. The portfolio proportion of these securities is relatively stable. Generally, 25% ~ 50% of the total assets are used for preferred stocks and bonds, and the rest are used for common stock investment. Its risk and return are between growth funds and income fund.