There are many types of funds, and there are different standards for the classification of fund types. In fund investment and financial management, there is a saying that those who are courageous buy funds and those who are timid buy trust funds. So what's the difference between trust funds and general funds? Let's get to know each other.

The difference between trust funds and funds

1 security: the risk of trust funds is lower than that of ordinary funds, and the security of trust funds is higher.

2 investment direction: trust funds have a wide range of investments, including financial products such as securities, and can also invest in industry; The investment scope of general funds is limited to stocks, bonds and some fixed-income wealth management products.

3 Liquidity: Trust funds are illiquid and cannot be redeemed before the expiration of the trust, but can be transferred; Open-end funds in general funds can be redeemed at any time, and closed-end funds can also be traded directly on the stock exchange, with good liquidity.