1. Fund types (categorized according to investment objects): stock funds. Invest in stocks. High risk, high return; bond fund. Invest in bonds. Low risk, low return; hybrid fund. Invest in both stocks and bonds; money funds. The income is average and the safety is high. (Yue Bao) is this type; other funds. For example, futures funds, options funds, real estate funds, precious metal funds, etc.

2. Trust funds are trust products issued by trust companies now. They mainly focus on loans, with relatively small equity investments. There are also trusts that invest in the financial market. This type of trust is actually a mutual fund. . Therefore, mutual funds are derivatives of trust funds.

Extended information

From an accounting perspective, funds are a narrow concept, meaning funds with specific purposes and uses. The funds we are talking about now mainly refer to securities investment funds. Trust funds, in the form of contracts or companies, use the issuance of fund certificates to collect unequal amounts of funds from the uncertain majority of investors in the society, and hand them over to specialized investment institutions for diversified investments based on the principle of asset portfolio. The income is provided by the investment A collective investment trust system in which investors share in proportion to their investment and bear corresponding risks.

Characteristics of trust funds: collective investment; expert management and operation; portfolio investment and risk diversification; separation of asset management and asset custody; maximum sharing of benefits and maximum risk sharing; based on pure Investment purpose; high liquidity.

Reference: Baidu Encyclopedia-Funds