(2) Different legal forms. Contract funds do not have legal person status, and dual-company funds have legal person status.
(3) The status of investors is different. Contractual funds are established according to fund contracts. Although fund investors can express their opinions through the fund holders' meeting, compared with the shareholders' meeting of corporate funds, the contractual fund holders' meeting gives investors relatively few rights. (4) The operating basis is different. Contractual funds operate funds according to fund contracts; Corporate funds operate funds in accordance with the articles of association of the fund company.
(5) Different financing channels. Contract funds generally do not lend to banks and operate without debt; Under the condition of good operation and smooth business progress, enterprise funds can borrow money from banks to increase the scale of investment portfolio.
The advantages of corporate funds lie in the relatively clear legal relationship between related parties and the perfect supervision and restraint mechanism; Contract funds are relatively simple and easy to set up. The difference between the two is mainly manifested in the different legal forms, but there is no distinction between advantages and disadvantages. At present, the existing funds in China are contract funds, while most funds in the United States are corporate funds.
Contractual fund, also known as trust and investment fund, refers to the fund formed by the trustor, trustee and beneficiary entering into trust and investment contracts according to certain trust deed principles. The fund has no legal person status. As the sponsors of the fund, the trustor and fund manager are responsible for designing the fund varieties, raising funds and managing the use of funds. The trustee is the fund custodian, who is mainly responsible for keeping the fund property, conducting accounting review and supervising the investment operation of the fund manager.