In addition to managing funds, fund companies can also increase their assets by investing in other financial assets. For example, some large fund companies will set foot in equity investment and hold shares in several listed companies. In addition, fund companies can also get management fees and sales service fees from investors. These extra income can also increase the asset size of the fund company. However, because the profits of fund companies are linked to the performance of the funds they manage, the growth of their assets is closely related to the performance of the funds they manage.
The assets of a fund company largely determine its reputation and market influence. The larger the assets, the greater the position and market share of fund companies in the industry. The larger the asset scale, the wider the market scope that fund companies can invest in, which will make the competition of the whole fund industry more intense. Therefore, as an investor, choosing a fund company with good reputation, large assets and excellent management level is an important way to ensure its investment income and risk dispersion.