A fund management company refers to a company established in accordance with relevant laws and regulations to manage fund raising, fund share subscription and redemption, fund property investment, income distribution and other fund operation activities. Generally speaking, fund companies are companies that manage investment funds. The general business items are: fund raising, fund sales, asset management of specific customers, asset management and other businesses allowed by China Securities Regulatory Commission, which are divided into closed-end funds and open-end funds according to the way of establishment; There are contract funds and corporate funds; According to the investment objects, there are stock funds, money market funds, option funds and real estate funds.

First, the role of fund management:

1, the fund has broadened the investment channels of small and medium-sized investors;

2. The fund has effectively promoted industrial development and economic growth by converting savings into investment;

3. Conducive to the stability and development of the securities market;

4. Conducive to the internationalization of the securities market.

Second, the difference between open-end funds and closed-end funds

1, the variability of fund size is different: the duration of closed-end funds is clear, the China is not less than 5 years, and the issued fund shares cannot be redeemed within this period. Under normal circumstances, the fund size is fixed. The fund shares issued by open-end funds are redeemable, and investors can buy the fund shares at will during the duration of the fund, which leads to the constant change of the total capital of the fund every day.

2. The trading methods of fund shares are different: when closed-end funds are initiated, investors can subscribe for fund management companies or sales organizations; When closed-end funds are listed and traded, investors can entrust securities companies to buy and sell at market prices on the stock exchange. When investors invest in open-end funds, they can apply for redemption from fund management companies or sales organizations at any time.

3. The buying and selling prices of fund shares are formed in different ways: as far as the buying and selling expenses of funds are concerned, investors have to pay a certain proportion of securities transaction tax and handling fees in addition to the closing price, and funds are just like buying and selling listed stocks; The related expenses that investors of open-end funds have to pay have been included in the fund price. Generally speaking, the transaction cost of closed-end funds is higher than that of open-end funds.