Contractual fund, also known as unit trust fund, refers to the fund established by investors, managers and custodians as fund parties and issuing beneficiary certificates in the form of signing fund contracts. Contract funds originated in Britain, and later became very popular in China, Hongkong, Singapore, Indonesian and other countries and regions. Contract fund is a kind of agency investment behavior based on contract principle. There is no fund charter, no company board of directors, but fund enterprises to regulate the tripartite behavior. The fund manager is responsible for the management and operation of the fund. As the nominal holder of the fund assets, the fund custodian is responsible for the custody and disposal of the fund assets and supervises the operation of the fund manager.

A corporate fund is a joint-stock investment company established according to the articles of association of the fund company and legally qualified as an independent legal person. Company funds raise funds by issuing stocks. After investors buy shares of a fund company, they become shareholders of the fund company as fund holders and enjoy investment income according to law. Corporate funds are similar to joint stock companies in organizational form. Shareholders elect the board of directors, and the board of directors selects the fund management company, which is responsible for managing the investment business of the fund.

At present, funds in China are all contractual funds.