The main purpose of buying a fund is to make money, but when choosing a fund, you should clearly understand the fund and not blindly buy it. Let me tell you what a company fund is.

What is an enterprise fund?

Company fund is a form of joint stock limited company established in accordance with the company law, which raises funds by issuing shares. Used for securities investment and distributed to investors in the form of dividends.

Because it is a kind of securities investment fund, no matter what type of corporate fund, it is essentially a capital aggregate invested by investors in securities, but this capital aggregate is organized in the form of companies. Self-operated funds organize all the subjects of funds in the form of companies, which is a completely organized capital aggregate. Other operating funds only organize investors (holders) in the form of companies, which is a semi-organized capital aggregate.

Characteristics of corporate funds

1, a corporate fund, exists in the form of a joint-stock company, and its business is mainly securities investment, which is the main difference from the general joint-stock company trust.

2. The capital of the company fund is the capital of the company as a legal person, that is, shares.

3. The capital structure of the company is the same as that of a general joint-stock company, with a board of directors and a shareholders' meeting. Fund assets are owned by the company, and investors are the shareholders of the company and the ultimate holders of its assets. The rights of shareholders are determined according to the shares they hold.

4. According to the articles of association, the board of directors is responsible for the safe appreciation of fund assets. For the convenience of management, corporate funds often have fund managers and custodians. The fund manager is responsible for the investment management of fund assets, and the custodian is responsible for supervising the investment activities of the fund manager. The custodian may (not necessarily) open an account in the bank and register the fund assets in his own name.