Federal Law FZ-156 defines a mutual fund (mutual investment fund) as a property complex, which consists of property (money) transferred by investors to the trust management of a management company.
The purpose of the mutual fund is to make a profit on the pooled funds of investors and distribute income between them. Investors can be any individuals and legal entities. An investor who has invested money in a mutual fund becomes a shareholder or owner of an investment unit (share). Ownership of shares in a mutual fund is confirmed by a registered security issued by the fund's management company. Each investment share gives its owner the same rights. The investor has the right to require the management company to properly manage its assets. He also has the right to receive money from the fund for his shares, i.e. repay them at their present value. The management company must be licensed. As a rule, the company is a team of professional managers. The investments of the shareholders are managed as a whole, and the profit is distributed in proportion to the investor's share in the fund. Management is carried out by making any transactions with the property of the fund. Mutual funds can be open-ended (open-ended fund) and interval (IPIF). Only cash can be transferred to the management of such funds. Closed-end unit investment funds (ZPIF) provide for the management of other property, as well as incomplete payment of shares. The relationship of the shareholders and the management company is governed by the agreement (rules) of trust management. The rules are set forth in the form of a public offer. The property of the mutual fund belongs to the shareholders on the basis of common shared ownership, but the division of the property or the separation of a share from it is not possible. For example, if all the property of a mutual fund is invested in the shares of an enterprise, this does not mean that the shareholder can be allocated shares of this enterprise. The value of a unit may increase or decrease depending on the size of the mutual fund's profit.