1) Separation of ownership and management rights. Fund investors have the rights and interests of the fund, but they don't operate it in person, but entrust the funds to a professional investment management company for operation, and they only wait for dividends.

2) Decentralized ownership and centralized management. A fund can have thousands of shareholders. The more shareholders there are, the stronger the financing function and the stronger the ability to resist risks. Decentralized ownership and centralized management will form a huge lever and produce a miracle of four or two.

3) Specialization and standardization of fund management. Fund investors themselves may not have the knowledge of capital operation, even if they have such knowledge, they may not have time to do specific operations. Giving money to experts for management can greatly improve the efficiency of the use of funds, avoid mistakes and minimize risks.

4) Mutual restraint of fund management mechanism. The separation of sovereignty and governance requires fund shareholders to formulate strict management norms to prevent the management company from abusing its power and dereliction of duty, and at the same time, to ensure the safety of funds, hire another custodian bank to supervise.

The above is the guidance of the investment experts of 5 1 Fund Project Network, and I hope it will help you.