China Securities Regulatory Commission stipulates that fund companies and fund managers only care about trading operations, and fund assets are only in banks, and special accounts are set up, which is called fund custody. Therefore, relatively speaking, fund assets only have the risk of loss caused by poor operation of experts, and there is basically no risk of theft.
Is the investment fund safe?
The assets invested by investors in the Fund are protected by law. As can be seen from the operation mode of funds in China, funds are a very safe investment mode:
Regulator: China Securities Regulatory Commission.
China Securities Regulatory Commission supervises the establishment, raising and operation of funds and fund management companies to protect the rights and interests of investors.
Management organization: fund management company
China's laws and regulations require fund management companies to have strict internal control mechanisms to control various risks and ensure the safety of investors' funds.
Custodian: fund custodian bank
The fund management company is responsible for the management and operation of the fund, and the assets of the fund are deposited in an independent account of the custodian bank, which is independent of the assets of the fund management company, the fund custodian bank and other funds. At present, there are only five big banks with custody business qualifications in China, namely: Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank and Bank of Communications. These reputable banks can act as custodians of your funds and keep the fund assets in strict accordance with laws, regulations and fund contracts to ensure that they are not used for other purposes.
Accounting firms and law firms
Independent accounting firms will audit the accounts of the fund, and law firms will issue legal opinions on the issuance and establishment of the fund to ensure strict compliance with various laws and regulations and protect the rights and interests of investors.
laws and regulations
The Interim Measures for the Management of Securities Investment Funds and the Pilot Measures for Open-ended Funds issued by the the State Council and China Securities Regulatory Commissions also set strict regulations on the establishment, offering, trading, investment operation and rights and obligations of all parties, so as to ensure the standardized operation of funds and the safety of fund assets and protect the interests of investors.
As can be seen from the above arrangement, the assets you invest in the fund have multiple guarantees, so they are quite safe. However, it should be reminded that the investment income of the Fund is not guaranteed, and the net value of the fund unit will fluctuate with the change of the investment market, so investors must bear investment risks when investing in the Fund.