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What are the characteristics of contract funds?
What are the characteristics of contract funds?

Features:

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 the issuance, trading, transfer, trading, profit distribution, income and debt service of beneficiary certificates-fund share certificates.

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 the unit trust fund has problems, the trustee has the responsibility to claim compensation from investors.