Contents: Introduction to fund companies Establishment of fund companies Business scope of fund companies Operation model of fund companies

Introduction to fund companies

Introduction

Funds A company refers to an interest that raises funds publicly or non-publicly, pools the funds of many investors to form independent property, is managed by a fund custodian, and is managed by a fund manager. It invests in securities or other projects in the form of an investment portfolio. A professional collective investment institution with maximum security and maximum risks.

Publicly raised funds (i.e. public funds) refer to securities investment funds that publicly issue beneficiary certificates to non-specific investors; non-publicly raised funds (i.e. private equity funds) refer to funds raised from specific investors investment funds established.

Classification

In a narrow sense, fund companies only refer to fund management companies (public fund companies) that are approved by the China Securities Regulatory Commission and can engage in securities investment fund management business; in a broad sense, Said that fund companies are divided into public fund companies and private equity companies. The business operations and personnel activities of public fund companies are subject to the supervision of the China Securities Regulatory Commission, and their employees are employees of the fund industry; private equity funds companies are not subject to supervision (the new fund law may bring private equity funds under the supervision of the China Securities Regulatory Commission).

In terms of organizational form, fund companies are divided into corporate fund companies and limited partnership fund companies. In practice, all public equity fund companies are corporate fund companies, while private equity fund companies adopt both corporate and limited partnership systems.

Funds

Securities investment funds (generally referred to as funds) are products issued by fund companies. In the links related to fund issuance, management, custody, registration, and sales, those related to the fund manager (i.e., the fund company) include fund issuance and management, registration, and some sales operations (direct sales). What is important to note here is that fund assets are independent of the inherent assets of the fund manager. That is to say, on the one hand, fund companies are not allowed to include fund properties as their own property. When the fund company goes bankrupt or collects debts, the fund is not included in this list; on the other hand, the investor's purchase of the fund does not constitute the purchase of the fund company's assets.

Related Persons

According to the "Securities Investment Fund Law of the People's Republic of China", the stakeholders of securities investment funds raised through public offerings of management fund shares generally include fund managers, Fund custodians, fund share holders, and fund sales agencies. The fund manager is a securities investment fund management company established with the approval of the China Securities Regulatory Commission. The fund custodian is the commercial bank that has obtained fund custody qualifications. The fund share holder is the investor who purchased the fund shares. The fund sales agency is the company approved by the China Securities Regulatory Commission. A legal person established to sell funds.