* * * Similarities: they are all indispensable tools in the asset management industry, and their essence is "entrusted by people to manage money on their behalf".
Difference: contractual (trust) fund, then this fund is a kind of generalized trust. Like trusts, contractual funds and trusts have most of the same characteristics, and the differences between them are as follows:
1, the license plate is different.
Trust license, private equity fund management license.
2. Different supervision.
Trust is supervised by CBRC, and contractual funds are supervised by the Securities Fund Association managed by CSRC.
3. Different levels of risk control,
Trust companies do a lot of business, and countless products have been audited. There are also many companies that ask for money every day, and the level of risk control will be much stricter. On the whole, the R&D process of the project is similar, and the development of contract fund companies is mixed, and the good risk control of contract fund companies can be compared with trust.
4. Contract funds cannot lend directly, and ABS (asset securitization products) cannot be directly established. Trust has no such restrictions.
5. Scope and flexibility of investment
However, contract funds involve more industries, a wider scope of investment, and flexible investment terms and methods.
6. Current market performance
The breakdown of trust is the general trend, and the income continues to decline. Contract funds have developed rapidly and become the main investment varieties in today's market.