Trust is a way of managing money, and it is also a financial system. Funds refer to funds with specific purposes and uses. Trust and fund can also form trust fund, also called investment fund, which is a collective investment model of "sharing interests and risks". So what's the difference between a trust and a fund?

The difference between trust and fund

Trust refers to the act that the trustor entrusts his property rights to the trustee based on his trust in the trustee, and the trustee manages and disposes in his own name according to the wishes of the trustor, for the benefit of the beneficiary or for a specific purpose. Trust is not only a way of financial management, but also a special property management system and legal behavior, and it is also a financial system. A fund refers to a certain amount of funds set up for a specific purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations.

Classification of trusts and funds

I. Classification of Trust

1. According to the criteria for the establishment of trust relationship, trust business can be basically divided into arbitrary trust and legal trust.

2. According to the nature of trust property, trust business can be divided into monetary trust, chattel trust, real estate trust, securities trust and monetary creditor's rights trust.

3. According to the purpose of trust, trust can be divided into guarantee trust, management trust and handling trust.

4. According to the legal status of trust matters, trust can be divided into civil trust and commercial trust.

5. According to different clients, trust can be divided into personal trust, corporate trust and personal corporate trust.

6. Trust can be divided into commercial trust and non-commercial trust according to the trustee's purpose of engaging in trust business.

7. From the beneficiary's point of view, trusts can be divided into four categories: self-interest trust, other-benefit trust, private-benefit trust and public trust.

8. According to the regions involved, trusts can be divided into domestic trusts and international trusts.

Second, the classification of funds.

1, which can be divided into open-end funds and closed-end funds according to whether the fund units can be increased or redeemed.

2. According to different organizational forms, it can be divided into corporate funds and contractual funds.

3. According to the difference of investment risk and income, it can be divided into growth fund, income fund and balanced fund.

4. According to different investors, it can be divided into four categories: bond fund, stock fund, money fund and hybrid fund.