What is a fund?
Fund refers to a certain amount of funds that exist in order to achieve a certain purpose of investors. There are mainly trust and investment funds, provident funds, insurance funds and other funds. According to relevant regulations, the establishment of securities investment funds by raising funds publicly or privately in People's Republic of China (PRC) shall be managed by a special fund manager and managed by a special fund custodian, so as to protect the interests of fund share holders and conduct securities investment activities. Funds issued by fund companies are purchased or redeemed by investors at specified prices to earn bid-ask spreads.