The fund has certain risks, gains and losses. Generally speaking, funds do not hold more positions in a stock, usually holding 3-5 votes, and the overall positions will not be all Man Cang. Even if there is systemic risk, all stocks will fall, and Man Cang will set a liquidation line, and generally a loss of 20% will touch the liquidation line. So under normal circumstances, you won't lose a lot at once. In extreme cases, it will generally not lose more than 20%.

Funds have broad and narrow definitions. A fund in a broad sense refers to a certain amount of funds set up for a certain purpose. The legal basis for the establishment procedures of fund companies is the Interim Measures for the Administration of Securities Investment Funds in China and the Notice of China Securities Regulatory Commission on the Application for the Establishment of Fund Management Companies. In the financial market, the fund is an important investment product, which is favored by investors. Fund companies are companies responsible for issuing, managing and operating funds, and the conditions for establishment are relatively strict. Eligible promoters shall apply to the China Securities Regulatory Commission for establishment, and go through the procedures.

Second, the fund's legal provisions

Article 1 The rights and obligations of fund managers, fund custodians and fund share holders shall be stipulated in the fund contract in accordance with this Law.

Fund managers and fund custodians shall perform their fiduciary duties in accordance with this Law and the provisions of fund contracts. Fund share holders enjoy income and bear risks according to their fund shares.

Article 2 The activities of securities investment funds shall follow the principles of voluntariness, fairness, honesty and credibility, and shall not harm the national and social public interests.

Article 3 A fund contract shall stipulate the mode of fund operation. The fund operation mode can be closed or open.

Article 59 of the Partnership Law of People's Republic of China (PRC), a special general partnership enterprise shall set up a practice risk fund to handle occupational insurance. The practice risk fund is used to pay the debts arising from the partners' practice activities. The practice risk fund shall be managed separately. Specific management measures shall be formulated by the State Council.