Fund companies usually refer to those companies that issue and manage fund products. These companies absorb investors' funds by issuing fund products and invest these funds in various financial instruments, such as stocks, bonds and money market instruments. In order to bring investors a return on investment. The main business of fund companies is fund issuance and management, including fund design, sales, investment and operation.
A fund management company refers to a company that provides fund management services. These companies are usually entrusted by fund companies to be responsible for the investment management and operation of funds. The main business of fund management companies is fund investment management and risk control, including asset allocation, investment strategy formulation, investment execution and risk management.
Simply put, fund companies are responsible for the issuance and management of fund products, and fund management companies are responsible for the investment management and operation of funds. In practice, many fund companies also have the function of fund management companies, which can manage their own fund products. Some fund management companies may also be entrusted by several fund companies to provide fund management services.
It should be noted that there are some differences between fund companies and fund management companies in legal status, business scope and operation mode. When investing in funds, investors need to understand the roles and responsibilities of fund companies and fund management companies in order to better choose investment products and services that suit them.