Individuals have income and expenses. If there is surplus income, it is necessary to manage the surplus income, which is financial management. Then financial management can be divided into savings and investment. What investment involves, that is, the investment target. At present, the investment targets with lower threshold are various financial instruments in the financial market, such as stocks, bonds and funds.

Direct investment is the unity of capital owners and capital users, and the unified movement of asset ownership and asset management rights. Generally speaking, it is a production enterprise, which will form physical assets. For example, individuals invest in entrepreneurship and set up companies.

Indirect investment is the decomposition of capital owners and users, and the separation of asset ownership and asset management rights. Investors have no direct ownership and control over enterprise assets and their operations, and their purpose is only to obtain their capital gains or preserve their value. Investing in various financial instruments is an indirect investment.

Fund is one of the indirect investment methods.