A fund contract is a written document concluded by a fund manager, a fund custodian and a fund sponsor to set up an investment fund, which is used to clarify the rights and obligations of all parties to the fund. When the investor pays the subscription fee for the fund share, it indicates that he recognizes and accepts the fund contract, and the fund contract is established at this time.
The fund prospectus is called the prospectus after the initial issuance. The purpose of this manual is to fully disclose all information that may have a significant impact on investors' investment judgment. Including managers, custodians, fund sales channels, purchase and redemption methods and prices, types and proportions of expenses, fund investment objectives, fund accounting principles, income distribution methods, etc.
The fund prospectus is called the prospectus after the initial issuance. The purpose of this manual is to fully disclose all information that may have a significant impact on investors' investment judgment. Including managers, custodians, fund sales channels, purchase and redemption methods and prices, types and proportions of expenses, fund investment objectives, fund accounting principles, income distribution methods, etc.
The fund prospectus is one of the most basic and important documents for investors to understand the fund, and it is a must-read document before investing. The fund prospectus (referred to as prospectus) must be updated regularly. Usually, the fund contract is updated once every six months from the effective date and announced within 45 days after the end of six months. The updated content expires on the last day of six months.
Important information contained in the fund contract
1. Information on fund investment operation arrangement and fund sales arrangement.
For example: fund operation mode, operation cost, fund sale, transaction, pledge and redemption.
Relevant arrangements, basic elements of fund investment, fund valuation and net worth announcement.
2. Matters specially agreed in the fund contract
(1) Rights and obligations of fund pawnbrokers, especially the rights of fund holders.
(2) Procedures and rules for convening, discussing and voting at the fund holders' meeting.
(3) Reasons, procedures and liquidation methods of fund contract termination.
Important information contained in the prospectus
1, fund operation mode
2. Types, standards and methods of expenses charged from fund assets.
3. The agreement on the sale, transaction, pledge and redemption of the fund amount, especially the relevant provisions of the fund transaction fee.
4. Fund investment objectives, investment scope, investment strategy, performance benchmark, risk-return characteristics, investment restrictions, etc.
5. Calculation method and announcement method of fund net asset value
6. Fund risk early warning
7. Summary of the prospectus
The above reference sources: Baidu Encyclopedia-Fund Contract, Baidu Encyclopedia-Fund Prospectus.