Securities investment funds raise funds for securities investment by raising funds. The main way to raise funds is to issue fund bonds to investors, and to pool the small funds scattered by many investors into a large fund to invest in securities such as stocks and bonds.
Securities investment funds use trust relationships to invest in securities. The so-called trust is the act of entrusting my property to a trusted third party to manage and use it according to my requirements. Investors entrust their property to a professional institution for securities investment, which is their trust in the institution, which manages and invests in full accordance with the requirements of investors and distributes the proceeds to investors. Obviously, this is an act of trust.
Securities investment fund is an indirect way of securities investment. After investors buy fund shares, the fund invests its own property in the securities market. Obviously, investors' securities investment is indirect. Therefore, investors cannot participate in the decision-making and management of companies that issue securities.