China's Securities Investment Fund Legal Mechanism

Securities investment funds(mutual funds)means a way of aggregative securities investment, in which the interests and risks are shared together by pooling the capitals of the investors through issuing funds unit and transferring it to the trusteeship of the trustee, which are managed and operated by the funds managers who engage in the investment of the financial tools such as stocks, bonds, etc. As the combinative product of the trusteeship system and modern financial system, its trust design of transferring properties to the management of experts enable the investors to gain rich returns as well as avoid the risks, which gains the much favor of the investors.We make a comprehensive review of the development courses of the overseas investment funds, we see that it is a process of stabilization day by day and healthy development with the stepwise healthiness and perfection of the related laws and codes. The study of the legal issues of the securities investment funds is the precondition of carrying through the effective legislation and making it development rationally and legally. The author tries to make contribution about some aspects as below:1.Analyzing the legal foundation of the securities investment funds in the way of comparative law. Constructing the trusteeship legal relation mode of our securities investment funds and putting forward the concept of "shares depository fiduciary".2.Understanding futher the legal system of the securities investment funds from law and economics. Making a result that the securities investment fund is accord with the economics principles with the transaction fees theory of the New Institutional Economics.3.Establishing the elastic regulation system of our securities investment funds with protection of the investors ' benefits as the core, and bringing out the independent director system and the directors and managers' liability insurance system. Making concepts of the future of our securities investment funds.