Trust refers to the act that the principal entrusts his property rights to the trustee based on his trust in the trustee, and the trustee manages or disposes in his own name for the benefit of the beneficiary or for a specific purpose according to the wishes of the principal. Trust relationship involves the relationship between the principal, the trustee and the beneficiary.

securities investment funds

Securities investment fund promoters raise funds by selling fund shares or fund shares to investors and hand them over to professional fund managers for investment in the agreed areas, which is a collective investment mechanism with * * * returns and * * * risks. It involves fund promoters, fund managers, fund custodians and fund share holders (beneficiaries).

In essence, the fund is an extension and expansion on the basis of trust business. As the holder of fund shares, the property will be managed by fund sponsors or fund managers by purchasing fund shares, and the value will be maintained and increased through appropriate operations.

Because the fund has joined the custodian, the operation of funds is more secure, and the trust does not emphasize this aspect.

The difference between trust and fund:

1. In terms of security, the difference between trust and fund is that the security of trust products is higher than that of funds and the risk is lower;

2. In terms of investment channels, the difference between trust and fund is that the investment scope of trust products is quite wide, which can not only invest in financial products such as securities, but also invest in industry, while the investment scope of securities investment funds is currently limited to stocks and bonds.

3. The difference between trust and fund is reflected in law. The law applicable to securities investment funds is the Securities Investment Fund Law and its supporting laws and regulations, such as the Measures for Information Disclosure of Securities Investment Funds, the Measures for the Administration of Securities Investment Funds Sales, and the Measures for the Administration of Securities Investment Funds Operation. The laws applicable to the trust plan of securities investment pool funds are the Trust Law and its supporting regulations, such as the Measures for the Administration of Trust and Investment Companies, the Interim Measures for the Fund Management of Trust and Investment Companies, the Notice of China Banking Regulatory Commission on Further Strengthening the Supervision of Trust and Investment Companies, and the Notice of China Banking Regulatory Commission on Regulating the Trust Business of Pool Funds.

4. The difference between trust and fund is reflected in supervision. The raising of securities investment funds must be approved by the China Securities Regulatory Commission and subject to the supervision of the China Securities Regulatory Commission and its dispatched offices. However, the collection of the trust plan of securities investment pool funds does not need the approval of the CBRC, but it needs to fulfill its reporting obligations according to law and accept the supervision of the banking supervision department in its operation;

The difference between trust and fund is reflected in fund raising. As far as trust is concerned, the trust company shall not accept more than 200 capital trust contracts from customers, and the amount of each contract shall not be less than 50,000 yuan. If the collective trust plan is promoted in different places, the amount of each contract shall not be less than 6,543,800 yuan. In addition, it is reported that in order to curb investment overheating, the Shanghai Banking Regulatory Bureau requires trust companies to invest their own funds, which account for 5% of the trust issuance scale, in the trust plan they promote. The fund has no change requirements;

5. The difference between trust and fund lies in the difference of investment liquidity. Open-end securities investment funds have no big restrictions on the redemption and transfer of fund shares, while closed-end funds are usually listed on stock exchanges and have strong liquidity (but usually have a high discount when transferring). As for the trust plan, it cannot be redeemed before the expiration of the trust period, but it can be transferred according to law, and its liquidity is poor.