Entrusted loan deposit, also known as entrusted loan funds, is a trust deposit business corresponding to entrusted loans. Competent departments, enterprises, institutions, government agencies and organizations deposit funds with trust institutions, so as to entrust trust institutions to issue loans to designated objects according to designated purposes. The deposit interest rate, income distribution method and trust fee shall be determined by the entrusting unit and trust institution through specific consultation according to the relevant provisions of the People's Bank of China. A fund is set up for a certain purpose, with a certain amount of funds and specific purposes. Funds include trust and investment funds, provident funds, insurance funds and retirement funds. Most of the time, the funds we are talking about mainly refer to securities investment funds. Funds in the existing securities market, including closed-end funds and open-end funds, have the characteristics of income function and value-added potential. From the accounting point of view, capital is a narrow concept, which refers to funds with specific purposes and uses. Because the investors of government agencies and institutions do not require investment returns and investment recovery, but require funds to be used for designated purposes in accordance with the law or the wishes of the investors, funds are formed. , yes. Any investment is risky. High risk and high return, low risk and low return. Relatively speaking, the risk of funds is definitely greater than bank deposits; But compared with stocks, it is low-risk. This is because: 1. In addition to stocks, funds often hold investment tools such as bonds and even a certain amount of cash; 2. The fund holds a large number of stocks, which can spread the risk of individual stocks. Generally speaking, when the market falls, the fund falls less than the market, and when the market rises, the fund rises less than the market. In the long run, for some funds with strong initiative and more stock assets, the income exceeds the market. Entrusted funds refer to entrusted trust institutions that issue loans to designated objects according to designated purposes.

Legal objectivity:

People's Republic of China (PRC) Securities Investment Fund Law

Article 8

The relevant taxes and fees for fund property investment shall be borne by the fund share holders, and shall be withheld and remitted by the fund manager or other withholding agents in accordance with the relevant state regulations on tax collection.

People's Republic of China (PRC) Securities Investment Fund Law

Article 9

Fund managers and fund custodians manage and use fund property, and fund service institutions shall perform their duties and fulfill their obligations of honesty, credibility, prudence and diligence when engaging in fund service activities. Fund managers should abide by prudent operation rules, formulate scientific and reasonable investment strategies and risk management systems, and effectively prevent and control risks when using fund property for securities investment. Fund practitioners shall have the qualifications for fund practice, abide by laws and administrative regulations, and abide by professional ethics and codes of conduct.