Contractual fund, also known as unit trust fund, refers to the fund established by issuing beneficiary certificates in the form of signing fund contracts with investors, managers and custodians as parties. At present, the securities investment funds in Chinese mainland take the form of contractual funds. Due to its characteristics, 1) unit trust is an administrator company established by a document named trust deed. Organizationally, it has no board of directors. The fund manager company itself, as the entrusting company, establishes the fund and manages the operation and operation of the fund on its own or by hiring managers. Usually, securities companies or underwriting companies are responsible for the issuance, trading, transfer, trading and profit distribution of beneficiary certificates.

2) The trustee accepts the entrustment of the fund manager company and registers and opens 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.