What is the basic process of fund issuance?
The basic process of fund issuance is to set up an investment enterprise or company first, and then register with the fund industry association. These are the first steps. The second step is to prepare due diligence materials, product structure design, and basically finalize the product. The third step is to determine the distribution channels and sales channels, and finally and most importantly, product filing. After these processes, the fund products are legally and formally issued online.
The issuance of funds is generally strict. On the one hand, the fund itself has to raise funds from the society. If there is no supervision and participation in the process, the risk is great. On the other hand, the money raised by the fund itself is separate from the fund manager's own account, both of which are under supervision. This operation can prevent the relevant personnel from escaping privately with money. In addition, in the whole process of net worth investigation, private equity institutions have to deal with various external institutions, including brokers such as securities companies and futures companies, channel parties such as trust companies or Public Offering of Fund, fund parties and sales channels such as banks or tripartite sales platforms.
In this regard, the issuance of funds is supervised by many institutions, and only under these related controls can funds be truly safe.