Simply put, the main differences between (contractual) funds and investment companies composed of investors are as follows:

1, the legal basis is different: the investment company is established according to the company law, while the contractual fund is established according to the fund contract, and the trust law is the legal basis for its establishment.

2. The legal person qualifications of fund property are different: investment companies have legal person qualifications, and contractual funds do not have legal person qualifications.

3. The certificates issued are different: investment companies issue stocks, and contract funds issue beneficiary certificates (fund units).

4. Different status of investors: As the shareholders of the company, the investors of the investment company have the right to express their opinions on the major decisions of the company, participate in the shareholders' meeting and exercise the shareholders' rights. Investors of contractual funds become the parties to the contractual relationship after purchasing beneficiary certificates, that is, beneficiaries, and have no say in the use of funds.

5. The basis for the use of fund assets is different: investment companies use fund assets according to the company's articles of association, and contractual funds use fund assets according to contracts.

6. Different financing channels: The investment company has legal person status and can borrow money from banks under certain circumstances. Contractual funds generally cannot borrow money from banks.

7. Different fund operation modes: unless the investment company reaches the bankruptcy liquidation stage stipulated in the Company Law, the company is generally permanent; The contractual fund is established and operated according to the fund contract. When the contract expires, the fund operation will be terminated accordingly.