What are the advantages and disadvantages of investment funds?
What is an enterprise fund?
Company fund is a form of joint stock limited company established in accordance with the company law, which raises funds by issuing shares. Used for securities investment and distributed to investors in the form of dividends.
As a kind of securities investment fund, no matter what kind of corporate fund, it is essentially a capital aggregate invested by investors in securities, but this capital aggregate is organized in the form of companies. Self-operated funds organize all the subjects of funds in the form of companies, which is a completely organized capital aggregate. Other operating funds only organize investors (holders) in the form of companies, which is a semi-organized capital aggregate.
Characteristics of corporate funds:
1)*** Both are joint-stock companies, but different from ordinary joint-stock companies, their business is mainly securities investment trust.
2)*** The capital of the same fund is the capital of the company as a legal person, that is, shares.
3)*** The structure of the same fund is the same as that of a general joint-stock company, with a board of directors and a general meeting of shareholders. Fund assets are owned by the company, and investors are the shareholders of the company and the ultimate holders of its assets. Shareholders exercise their rights at the shareholders' meeting according to the size of their shares.
4) According to the articles of association, the board of directors is responsible for the safe appreciation of the fund assets. For the convenience of management, mutual funds often have fund managers and custodians. The fund manager is responsible for the investment management of fund assets, and the custodian is responsible for supervising the investment activities of the fund manager. The custodian may (not necessarily) open an account in the bank and register the fund assets in his own name.
In order to clarify the rights and obligations of both parties, * * * has a contractual relationship with the fund company and the custodian, and the responsibilities of the custodian are clearly stipulated in the Custody Agreement signed by him and * * * with the fund company. If the fund of * * * has problems, investors have the right to directly ask the fund company of * * *.