Securities companies engage in securities business, such as stock trading. Trading in the stock exchange requires seats, and seats are a kind of trading qualification, but individuals cannot obtain this qualification. And securities companies have this qualification. So when you want to invest in the securities market, you should borrow the qualifications of the securities company, that is, deposit your money in its account and trade it. The actual transactions are carried out by ourselves, and only a handling fee is required to be paid to the securities company, which is equivalent to the cost of renting trading seats.
The fund pools small amounts of money for investment. The fund company is a corporate fund, that is, this fund exists in the form of a corporate legal person and has a legal status. Buying a fund is equivalent to giving it money, and then it is responsible for all transactions. The final income MINUS the company's operating costs is your own income and will be returned to you. But at the same time, it has your money.