2. Different investment channels. The investment scope of trust is wider than that of fund. Trusts can invest in financial products and industries, while funds can only invest in financial products.

3. Trust and fund aim at different investment groups. Trust is aimed at high net worth people, while ordinary people are aimed at funds.

4. The supervision of funds and trusts is also different. Trust does not need the approval of CBRC, fund needs the approval of CSRC, and it also needs supervision in operation. The trust will also be supervised and fulfill its statutory reporting obligations.

5. Differences in 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 stronger liquidity (but the transfer discount is often higher). 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 very poor.

Does the foundation lose money?

Yes The fund is not a capital-guaranteed product, but a risky wealth management product, and naturally there is a risk of loss. The risk of capital is high and low. Users are advised to carefully choose the right fund for purchase after fully understanding and combining their actual situation.