Contract fund is a big category of funds, and bond fund is one of them. So, what are the characteristics of contract funds? Friends who don't know, come and meet me!

Contractual fund, also known as unit trust fund, refers to the fund established by issuing beneficiary certificates in the form of signing fund contracts with investors, managers and custodians as parties. It can be divided into unit investment funds and fund investment funds.

So, what are the characteristics of contract funds? It is understood that contract funds mainly have the following characteristics:

1. Unit Trust is a management company established by a document named trust deed. Organizationally, it has no board of directors. The fund manager company sets up the fund as the entrusting company by itself, and employs the manager to manage the operation and operation of the fund by himself or again. Usually, securities companies or underwriting companies handle the issuance, transaction, transfer, transaction, profit distribution, expected annualized income and principal and interest of beneficiary certificates on their behalf.

2. The trustee accepts the entrustment of the fund manager company to register and open an account for the fund in the name of the trustee or trust company. The fund account is completely independent of the account of the fund custody company. Even if the fund custody company goes bankrupt due to poor management, its creditors cannot use the assets of the fund. Its duties are to manage, keep and dispose of the trust property, supervise the investment work of the fund manager, and ensure that the fund manager abides by the investment regulations listed in the prospectus, so as to make its investment portfolio meet the requirements of trust deed. However, when there is a problem with the unit trust fund, the trustee needs to be responsible for claiming compensation from investors.