With the economic development mode of China's opening to the outside world, the investment types in China's investment market are becoming more and more diversified. Emerging trust funds are one of the important choices for investors, and private placement products are increasingly welcomed by investors. What exactly is a trust fund? How to distinguish private equity funds? 1. What's the difference between a trust and a private equity fund? 1. In terms of security. The safety of trust products is generally higher than that of private equity funds, which is mainly due to the strict supervision of CBRC, relatively standardized industry and strong registered capital of trust companies themselves. Of course, in recent years, there have also been individual delays and "stepping on thunder" incidents in trusts, which also require specific project analysis. As far as the probability of capital loss is concerned, the probability of trust products is far lower than that of private equity funds. 2. In terms of investment channels. According to the Interim Measures for the Supervision and Administration of Private Equity Funds (hereinafter referred to as the Interim Measures for the Supervision of Private Equity Funds), private equity funds can invest in stocks, equities, bonds, futures, options, fund shares and other investment targets agreed in the investment contract, such as alcohol and artworks. The investment scope of trust products is also quite wide, both financial products such as securities and industry can be invested, and there is little difference between the two investment scope restrictions. But most of them are trust and investment industries, and most of them are channel products. Private equity funds invest in securities investment funds such as stocks. 3. In terms of liquidity. According to the signed agreement, the trust cannot be redeemed before the expiration of the trust period, but it can be transferred according to law, and its liquidity is poor. Private equity funds often have a closed period and redemption fee, which leads to high transfer discount and poor liquidity. 4. threshold. The threshold of trust is very high, generally 6.5438+0 million, so it can't be widely publicized, but only a specific small-scale publicity and promotion; 20 16 "new regulation 7. 15" was promulgated. According to the regulations, qualified investors of private equity funds refer to institutions with corresponding risk identification and bearing capacity. The investment amount of a single private equity fund is not less than100000 yuan, the net assets are not less than100000 yuan, and the financial assets are not less than 3 million yuan or the last three months. However, as far as the actual market situation is concerned, due to the limitation of the proportion of large and small trusts, there are fewer and fewer trust products that100000 can buy. 5. profitability. At present, most trust products on the market are fixed income, and the income range is below 10%. However, the income composition of private equity funds is different, the target is different, and there are many floating returns, which cannot be compared uniformly. Generally speaking, the risks and benefits of wealth management products are directly proportional, and investors need to be cautious about every project. Second, what are the advantages of trust investment? 1. The ownership, management and beneficial right of the trust property are legally separated, and the trust property is placed under the trustee's name. The trustee enjoys the property right of the trust property in accordance with the law and trust documents, and has the right to manage, use and dispose of the trust property in his own name. The trustor and beneficiary do not manage and dispose of the trust property, but the benefits generated by the trust belong to the beneficiary. The beneficiaries of trust products can be themselves (self-beneficial trust) or others (other-beneficial trust). This kind of investment method and the flexibility of products are lacking by brokers, banks and fund companies. 2. Trust property has legal independence. According to relevant laws and regulations, trust has the function of confidentiality. Once a person's legal property has passed the legal trust form, the debt relationship between the principal, the trustee (trust company) and the beneficiary will no longer be investigated. So that the beneficiary can enjoy the debtor's rights to the trust property before the principal or the trustee. Even if the trust company goes bankrupt, the trust property can be completely handed over to other trust companies for continued management. Therefore, it protects the independence and security of trust property to the maximum extent in law, has certain stability and long-term, and is more suitable for long-term planning of property transfer and property management. 3. Diversification of trust property Anything with monetary value, whether it is movable property (cash, precious metals, securities, etc.). ) or real estate (real estate, production equipment, etc. ), whether it is property right (property use right, ownership, etc.). ) or creditor's rights (equity, charging rights, etc.). ), whether tangible or intangible, can be used as trust property to set up a trust; As long as it does not violate the mandatory provisions of the law and public order, the client can create trusts for various purposes; Trust has a wide range of applications and a wide variety of trust products. Therefore, trust is also called "financial department store". 4. Diversified trust companies in the investment field are the only financial institutions that are allowed to invest in the capital market, money market and industrial investment market at the same time. Trust companies will hand over the personal funds raised through trust to professionals, and make use of the diversification of trust investment fields to make portfolio investment, which can effectively reduce investment risks to a certain extent and maximize investors' income.