A fund management company refers to a company established in accordance with relevant laws and regulations to manage fund operation activities such as fund raising, fund share subscription and redemption, fund property investment and income distribution. The legal raising of securities investment funds shall be undertaken by the fund manager. The fund manager shall be a legally established fund management company. As a fund manager, it shall be approved by the the State Council Securities Regulatory Authority. According to the way of establishment, there are closed-end funds and open-end funds; There are contract funds and corporate funds; According to the way of establishment, there are closed-end funds and open-end funds; According to the investment objects, there are stock funds, money market funds, option funds and real estate funds. Funds can be divided into public offering and private offering according to whether they raise funds for the public, and securities investment funds (stocks), futures investment funds (futures contracts), monetary investment funds (foreign exchange), gold investment funds (gold) and FOF funds (fund investment funds, PE and VC funds) according to the main investment targets. REITs real estate investment trust (real estate investment fund, the subject matter of which is real estate), TOT trust of trust (trust investment fund, the subject matter of which is trust product) and hedge fund (also called arbitrage fund, the subject matter of which is arbitrage space). Many of the above-mentioned fund forms are in western countries, but in China, there is only such a concept, and there is no entity (private placement is possible because it is not limited by policies and the investment target is flexible).

The so-called funds in China should be called securities investment funds accurately, such as Dacheng, Huaxia, Jiashi and Bank of Communications Schroeder. These Public Offering of Fund are strictly supervised by the CSRC, and their investment direction and proportion are strictly restricted. Most of them manage tens of billions of dollars.

Private placement is strictly restricted in China, because it can easily become "illegal fund-raising". The difference between the two is: whether to raise funds for the general public, whether the ownership of funds has been transferred, if more than 50 people raise funds and transfer them to personal accounts, it is classified as illegal fund-raising, which is a very serious economic crime and can be sentenced to death, such as Wu Ying, Zhejiang, Delong, Tang Wanxin, and Madoff, USA.