The reason for the rise and fall of funds is that funds are determined by the stock market, which is determined by policies, economic situation, investor psychology and a series of other aspects. The rise and fall of the fund is determined by the rise and fall of the stocks purchased by the fund. If the stock it holds goes up, the fund will go up, and vice versa.

According to different organizational forms, it can be divided into corporate funds and contractual funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.