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What does the Children's Trust Fund mean?
Public trust fund is a foundation established by financial trust institutions entrusted by the government, social organizations, units or individuals.

1, different investment channels. Compared with funds, the investment scope of trusts will be wider. Because trust can not only invest in various financial products, but also invest in the real economy. The investment scope of the Fund is limited to stocks and bonds.

2. The threshold is different. For these two products, the threshold for their existence is different. Under normal circumstances, the investment threshold of trust is 6.5438+0 million yuan, and the funds are relatively small, or even there is no threshold limit. Therefore, trusts are generally aimed at high-net-worth people, while funds are aimed at ordinary people.

3. Different liquidity. Whether it is an open-end fund or a closed-end fund. There are not too many restrictions, and the transfer and redemption are more convenient. However, the trust will have a certain period of time, after which investors can carry out relevant redemption operations. Therefore, from this perspective, the liquidity of funds is stronger than that of trusts.

Trust is a legal act to manage and dispose of property. For a certain purpose (trust purpose), the trustee (such as the board of directors of the fund) signs a trust contract with the trust company to transfer its legally owned property or property right (trust property) to the trust company (trustee). The trust company invests or manages the trust property in strict accordance with the provisions of the trust contract, and distributes the trust property or income to the beneficiaries designated by the trustee in accordance with the provisions of the trust contract.

Trust management of social welfare funds means that the fund board and the trust company sign a fund management trust contract and hand over the raised funds to the trust company. The trust company will manage, use and invest funds in strict accordance with the methods and requirements agreed in the fund articles of association and the fund management trust contract. For example, the board of directors of the fund may require the trust company to investigate and study a project in advance and submit an investigation report; The board of directors of the fund may require the trust company to issue funds to designated objects; The board of directors of the fund may require the trust company to recover the funds allocated to an object within a time limit (if possible, collect interest, etc.). ); The board of directors of the fund may require the trust company to track and investigate the use of the fund and submit the necessary investigation report. When funds are idle, trust companies will give full play to their expertise in professional management and choose appropriate investment methods to maximize the value of funds.