Mutual funds are a type of trust fund. They are also called investment companies in the United States. In Hong Kong, they are generally translated as mutual funds. Taiwan also uses mutual funds as the translation.

In mainland China, ordinary investors do not use the term mutual fund, but replace it with terms such as investment fund and securities investment fund.

The creation of this kind of financial product is based on the knowledge and trust of professional financial practitioners. Because the general public does not understand the many legal and language issues of cross-border investment in foreign financial products; there is no technical analysis by professional traders.

Ability, so you pay a small fee and hand over the money to a team of a credible financial institution for management. The public only needs to roughly select the investment target and risk level.

***Tong Fund is a for-profit corporate securities investment fund that is managed by professional financial practitioners as fund managers and publicly raises funds from social investors to invest in the securities market.

***Purchase stocks, bonds, commercial paper, commodities or derivative financial instruments with the Fund to obtain interest, dividends or capital gains.

***Profits obtained from investments in the same fund are shared between investors and fund managers.

Since mutual funds absorb public funds and operate largely on trust in financial institutions, there is room for deliberate fraud or deception (for example: the Madoff incident during the financial tsunami). Countries

The government has implemented relatively strict controls on it. Its formation, information disclosure, transactions, changes in capital structure, and dissolution are all restricted by laws and regulations. The control in the United States is particularly strict.