The risk of capital preservation has a low probability of principal loss, but the probability of principal loss is not completely non-existent, and the trust plan does not promise capital preservation. When the securities market falls sharply and it is too late to stop the loss and close the position, there may be a situation that the net loss exceeds the "buffer pad", and then the principal of the priority customer will lose money. interest rate risk

Generally, domestic interest rates are adjusted once a year, and one-year trust funds generally do not generate interest rate risk. Trust funds with a term of more than 2 years need to look at the contract terms signed by the fund. From the perspective of the use of trust funds, trust funds used for loans will generally agree with borrowers that the loan interest rate will be adjusted with the central bank, thus avoiding interest rate risk, while trust funds used for equity investment repurchase will determine whether they can avoid interest rate risk according to their agreement with the investee on interest rate changes. credit risk

The magnitude of wind risk determines whether the investor's principal can be recovered smoothly and whether the expected income can be realized smoothly, so it is also the risk factor that investors are most concerned about. Judging the credit risk depends on the investment situation of the capital utilization project, especially whether the cash flow of the project can fully bear the obligation of repaying the principal and interest during the trust period; Second, depending on the background and strength of the project company, whether there is enough financial strength to digest by the company itself when the project cannot repay the principal and interest normally; Third, look at the means of credit enhancement in the use of trust funds, such as whether the collateral (pledge) is excellent, whether the mortgage (pledge) ratio is safe, how the guarantor's credit rating and financial strength are, whether there is insurance intervention, whether the special compensation funds are sufficient, and the scale and obligations of the secondary beneficiary rights in the beneficiary rights. Fourth, look at the credibility of trust companies selling trust products, whether they have government background, rich project operation experience and capital strength. Generally speaking, infrastructure is superior to real estate investment and other types of projects, while trusts applied to large enterprise groups are superior to trusts applied to general companies, and trusts with sufficient mortgage and guarantee are superior to general credit trusts. liquidity risk

The existing trust products can only be transferred in the form of contracts, and there is no formed transfer market, which is more risky than the liquidity risk of stocks, bonds, funds and other varieties. However, when designing trust products, trust companies have already given enough income compensation for this risk. Common trust fund risks are mainly the above four points. To sum up, it can be seen that the liquidity risk and interest rate risk in trust fund risk are uncontrollable, while the capital preservation risk and credit risk are controllable. Investors should pay special attention to this.