Fund refers to an institution that is invested by many investors for the purpose of investment, forms a pool of funds and manages assets. Funds can invest in assets such as stocks, bonds and money funds, and entrust fund managers to manage and allocate assets. Funds are generally divided into open-end funds and closed-end funds. Open-end funds can be bought and sold at any time, and closed-end funds can only be sold within the prescribed time limit. Fund income is reflected in the form of net value appreciation and dividends.
Although both commissions and funds involve capital transactions, they are different in nature. Commission is the seller's reward to the intermediary, while the fund is an institution funded by multiple investors to manage assets. The commission is usually calculated according to the order amount, and multiple transactions require multiple commission payments; The Fund centrally manages the funds of multiple investors and does not involve a single specific transaction. Investors only need to buy fund shares to enjoy the benefits of the fund. In addition, the commission payment is usually one-off, and the income of the fund depends on the income of asset management.