Fund is an indirect way of securities investment. Fund management companies concentrate investors' funds by issuing fund units, which are managed by fund custodians (that is, qualified banks) and managed and used by fund managers to invest in financial instruments such as stocks and bonds, and then * * * bear the investment risks and share the benefits.

The fund management company is the fund manager: the fund manager is the fundraiser of fund products and the fund manager. Its main responsibility is to be responsible for the investment operation of fund assets according to the agreement of the fund contract, and strive for the maximum investment income for fund investors on the basis of controllable risks. Fund managers play a central role in fund operation. Most important functions such as the design of fund products, the sales and registration of fund shares and the management of fund assets must be undertaken by the fund manager or other service organizations selected by the fund manager. In China, fund managers can only be held by legally established fund management companies.