We already know that the agency investment behavior organized based on certain contractual principles is called contractual fund, which is established by the fund contract signed between fund investors, fund managers and fund custodians. Do you want to know the characteristics of contract funds? In fact, there are two main characteristics:

What are the characteristics of contract funds?

1 The contractual fund has no board of directors in its organizational structure.

Under normal circumstances, the fund manager company will set up the fund itself as the entrusting company, and then hire the manager to manage the operation and operation of the fund by himself or on his behalf. Usually, it will appoint a securities company or an underwriting company to handle the fund's issuance, transaction, transfer, transaction, profit distribution, expected annualized income and debt service.

The account of the contractual fund is completely independent of the account of the fund custodian company.

Even if the fund custody company goes bankrupt due to poor management, its creditors cannot use the assets of the fund. At the same time, the trustee of the contractual fund has a great responsibility, requiring him to manage, keep and dispose of the trust property, supervise the investment work of the fund manager, ensure that the fund manager abides by the investment regulations listed in the prospectus, and make his investment portfolio meet the requirements of trust deed.

The above introduces the two characteristics of contract funds for everyone, and I hope the answer will be helpful to everyone.