1. ***Definition of mutual funds Investment funds originated in the United Kingdom and are popular in the United States.

The Massachusetts Investment Trust Company, established in Boston in 1926, was the first modern mutual fund in the United States.

In the following years, investment funds experienced their first glorious period.

By the end of the 1920s, the total assets of all closed-end funds reached $2.8 billion. The stock market crash of 1929 dealt a heavy blow to the emerging U.S. fund industry.

After the crisis, in order to protect the interests of investors, the U.S. government enacted the Securities Act (1933), the Securities Exchange Act (1934), the Investment Company Act and the Investment Advisers Act (1940).

Among them, the "Investment Company Law" specifies the legal requirements for the composition and management of investment funds in detail, and lays a good foundation for the rapid development of investment funds through complete legal protection.

After World War II, the U.S. economy grew strongly and investor confidence recovered rapidly.

Today, investment funds are favored by many institutional investors including bank trust departments, insurance companies, pension funds, etc.

The United States has become the most developed country in the fund industry in the world, and fund assets have exceeded bank assets in scale.

In English, the mutual fund of mutual funds means joint, and fund means holding (control), which is to pool the money of many people for professional investment operations.

***Tong Fund is actually a type of investment company investmentcompany.

As a company, each fund has its own managers, employees, operating methods, goals, etc.

The investment objective of a fund reflects the reason why it was established and exists.

In short, mutual funds pool a portion of the client's funds and make investments with preset purposes on behalf of their interests.

Every fund company hires investment professionals to manage the fund's investment portfolio, often called portfolio managers.

These professionals can form a team to operate funds, and some investment companies even entrust other companies or freelance investment professionals to help the company with capital operations.

*** Mutual funds pool the money of a large number of investors and employees to purchase the stocks of various manufacturers.

A portfolio of stocks, bonds, and other assets purchased on behalf of a group of investors and managed by a professional investment company or other financial institution.

There are two types of mutual funds: open-end and closed-end.

Open-end mutual funds can redeem or issue shares at any time at a net asset value (NAV), which is the market price of all securities held divided by the number of shares outstanding.

The number of shares outstanding in an open-end fund changes daily as investors buy new shares or redeem old shares.

Closed-end mutual funds do not redeem or issue shares at NAV.

Shares of closed-end funds trade through brokers like other common stocks, so their price differs from net asset value.

***Same fund means that a fund company is established in accordance with the law, raises funds by issuing shares, and investors appear as shareholders of the fund company.

It is similar in structure to a general joint-stock company, but it does not engage in actual operations. Instead, it entrusts the management and operation of assets to a fund management company and entrusts other financial institutions to take care of fund assets on its behalf.

The legal documents for its establishment are the fund company's articles of association and prospectus.

The huge impact of the trust system on investment funds is far-reaching.

It is not limited to its direct impact on the latter, but is also reflected in: on the one hand, it divides investment funds into corporate funds and contract funds in terms of organizational form; on the other hand, it leads to the emergence of open-end funds.

Historically, open-end investment funds were designed and formed to improve the liquidity of the fund and draw lessons from the institutional arrangements of the modern trust system that allow trustees to cancel trust deposits.

Contractual funds, also known as trust funds or unit trust funds, are issued beneficiary units by entering into a trust contract between the fund manager (i.e., the fund management company) and the trustee (custodian) representing the rights and interests of the beneficiaries. The manager shall issue beneficiary units in accordance with the

The trust contract is engaged in the management of trust assets, and the custodian, as the nominal holder of the fund assets, is responsible for the custody of the fund assets.

It securitizes beneficiary rights and enables investors to share the results of fund operations as fund beneficiaries by issuing beneficiary units.

The legal document establishing it is a trust deed and there is no fund charter.

Contractual funds follow the trust principle in their specific operations, and the behaviors of the fund manager, custodian, and investor are regulated through trust contracts.

Therefore, in foreign countries, such investment funds generally have the word "trust" in their names. For example, they are called securities investment trusts in Japan, South Korea and Taiwan, and they are called unit trusts in the United Kingdom and Hong Kong.

The main difference between corporate funds and contractual funds lies in the different organizational structures and legal relationships established, so the latter is more flexible than the former.

Corporate funds are most common in the United States, while contractual funds are more common in the United Kingdom.

To put it simply, a mutual fund means that a fund company is established in accordance with the law, raises funds by issuing shares, and investors appear as shareholders of the fund company.

It is similar in structure to a general joint-stock company, but it does not engage in actual operations. Instead, it entrusts the management and operation of assets to a fund management company and entrusts other financial institutions to take care of fund assets on its behalf.