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The difference between insurance and funds

1. Different nature Funds broadly refer to a certain amount of funds established for a certain purpose.

It mainly includes trust investment funds, provident funds, insurance funds, retirement funds, and various foundation funds.

Refers to funds with specific purposes and uses.

The funds we are talking about now mainly refer to securities investment funds.

Insurance means that the policy holder pays insurance premiums to the insurer in accordance with the contract, and the insurer is responsible for the property losses caused by the accidents that may occur as stipulated in the contract, or the death, disability, or illness of the insured.

Or a commercial insurance act that assumes the responsibility for paying insurance benefits when the age, term and other conditions stipulated in the contract are reached.

2. The different characteristics are realized by voluntarily entering into insurance contracts between policyholders and insurers on the basis of equality, mutual benefit and consensus based on the principle of autonomy of will, while social insurance is enforced through law.

The purchase and sale entrustment of fund units adopts the principles of "openness, fairness and impartiality" and the principles of "price priority and time priority".

Fund trading orders are conducted in standard lots.

3. Different meanings. In a legal sense, insurance is a contractual act, that is, by signing an insurance contract, the rights and obligations of both parties are clarified. The insured pays premiums to obtain compensation within the scope of the insurance contract, and the insurer has

The right to receive premiums and the obligation to provide compensation.

The fund’s effect on the country’s economic development.

Promote the horizontal integration of funds and the horizontal linkage of the economy, improve the overall efficiency of resource allocation, and establish and improve self-restraint and self-development management mechanisms for fund sales agencies.