Trust fund, also known as investment fund, is a collective investment model of "benefit sharing and risk sharing". It refers to a collective investment trust system in which the unequal funds of most investors who are uncertain in society are pooled through contracts or companies, and fund bonds are issued to form trust assets of a certain scale, which are handed over to professional investment institutions for diversified investment according to the principle of asset portfolio, and the profits obtained are shared by investors in proportion to their capital contribution and bear corresponding risks. What are the risks of trust funds?

1, credit risk

1) Capital account has liquidity and solvency.

2) The specialty and strength of the project company, whether it has sufficient financial strength and ability, and when it can't meet 1), it can handle it independently and has sufficient solvency.

3) Professionalism, social acceptance, rich experience and scale of the trust product issuing company.

4) Whether the collateral has high safety, including insurance and its own quality.

2. Market risk

Risks brought by market changes during the current operation of the project. Generally speaking, the probability of principal loss is very low, but the probability of principal loss is not completely absent. When the market plummets, it will cause losses because the trust plan does not promise to protect the capital.

3. Policy risks

Due to policies or regulations promulgated by the government, trust projects are affected.

4. Interest rate risk

The current interest rate of the domestic central bank is adjusted once a year, and the trust funds with a term of two years or more are risky, so it is necessary to adjust the relevant contents to avoid interest rate risk.

5. Liquidity risk

The existing trust products can only be transferred in the form of contracts, which is relatively risky compared with the liquidity risks of stocks, bonds, funds and other varieties. However, the trust company made corresponding compensation for this.