(1) Contractual funds Contractual funds, also known as unit trust funds, refer to funds issued by investors, managers and custodians as parties to the fund in the form of signing fund contracts. It is a kind of agency investment behavior organized on the basis of contract principle. There is no fund charter or company board of directors, but the behavior of the three parties is regulated through fund enterprises. The fund manager is responsible for the management and operation of the fund. As the nominal holder of the fund assets, the fund custodian is responsible for the custody and disposal of the fund assets and supervises the operation of the fund manager.
As the initiator of the fund, the fund manager raises funds by issuing beneficiary certificates to form trust property. According to trust deed, the fund custodian is responsible for keeping the trust property, specifically handling securities, cash management and related agency business. Investors are holders of beneficiary certificates and enjoy the investment income by purchasing beneficiary certificates and participating in fund investment. The beneficiary certificates issued by this fund show the rights and interests enjoyed by investors in investment funds.
(2) Corporate funds are also called * * * funds, which means that the fund itself is a company limited by shares. Established in accordance with the company law, through the issuance of fund shares
Invest the collective funds in various securities. Corporate investment funds are similar to joint-stock companies in organizational form. The assets of a fund company are owned by investors (shareholders). Shareholders elect the board of directors, and the board of directors first hires the fund manager, who is responsible for managing the fund business. The establishment of a company's fund shall be registered with the administrative department for industry and commerce and the Securities and Exchange Commission, and shall also be registered at the place where the shares are issued. The organizational structure of corporate funds mainly includes the following parties: fund shareholders, fund companies, investment consultants or fund managers, fund custodians, fund conversion agents and fund lead underwriters.
Securities investment funds issued by fund management companies in China are all contractual funds. There are two types of private equity funds: contractual and corporate.