For many investors, they should know something about fund investment. In fact, there are two kinds of funds, one is Public Offering of Fund, and the other is private equity fund. However, the two funds are purchased in different ways. Private equity funds are not open to the public and not everyone can buy them. Investing in private equity funds also requires signing a fund contract. A fund contract shall include the following contents: the rights and obligations of fund share holders, fund managers and fund custodians; The mode of operation of the fund; The mode, amount and subscription period of the fund; The investment scope, investment strategy and investment restrictions of the fund; Principles and implementation methods of fund income distribution; Related expenses borne by the fund; Contents and methods of providing fund information; Procedures and methods for subscription, redemption or transfer of fund shares; Reasons and procedures for the alteration, rescission and termination of the fund contract; Liquidation method of fund property; Other matters agreed by the parties.

legal ground

Article 3 of People's Republic of China (PRC) Securities Investment Fund Law The rights and obligations of fund managers, fund custodians and fund share holders shall be stipulated in the fund contract in accordance with this Law.

Fund managers and fund custodians shall perform their fiduciary duties in accordance with this Law and the provisions of fund contracts.

Fund share holders of funds established through public offering (hereinafter referred to as Public Offering of Fund) shall enjoy benefits and bear risks according to their fund shares, and the income distribution and risk bearing of funds established through non-public offering (hereinafter referred to as non-public offering funds) shall be stipulated in the fund contract.