Investment fund is an investment tool that collects the funds of many scattered investors, entrusts investment experts (such as fund managers) to invest, and investment management experts conduct unified investment management according to their own investment strategies to benefit many investors. Investment funds pool public funds, share investment income and share investment risks, which is a collective investment method with * * * income and * * risk.

Process:

1 Investors' funds are pooled into a fund.

2. The fund entrusts an investment expert-the fund manager to conduct investment operation. (1) Investors, fund managers and fund custodians establish trust agreements through fund contracts, and establish a trust relationship between the fund managers who are entrusted with financial management and the fund custodians who are responsible for keeping funds. (2) Fund managers and fund custodians (mainly banks) establish their respective responsibilities and rights through custody agreements.

Fund managers distribute investment income to investors through professional financial management.

In China, the fund custodian must be a qualified commercial bank and the fund manager must be a professional fund manager. Fund investors enjoy the benefits of securities investment, but also bear the risk of loss.