There is a trust relationship between investors and fund managers of securities investment funds. The investor is the principal, the fund manager is the trustee, and the fund is a kind of beneficiary certificate. Investors become beneficiaries when they buy funds. Securities investment fund refers to a collective investment method that raises funds through public offering of fund shares, is managed by the fund custodian and managed and operated by the fund manager, and invests in securities in the form of asset portfolio to seek benefits for fund share holders.

The content of this article comes from People's Republic of China (PRC) Financial Code: Application Edition by China Law Publishing House.