Fund companies raise a lot of money from investors by issuing fund shares, and are responsible for investing and operating these funds. Fund companies are fund managers who specialize in managing the investment direction of funds.

However, this part of the money collected from investors is not placed in the fund company, but in the bank, which is the custodian of funds and is responsible for the transfer and liquidation of funds, thus avoiding the fund company from misappropriating funds privately.

Therefore, the relationship between the fund custodian and the fund manager is mutual checks and balances, and the two sides supervise each other to make the fund more transparent.