The difference between contractual funds and trusts;
* * * Similarities: they are all indispensable tools in the asset management industry, and their essence is "entrusted by people to manage money on their behalf".
Difference:
Advantages and disadvantages of trust:
1, advantages
(1) The entrusted loan can be directly lent.
(2) Credit asset securitization can be established.
2. Disadvantages
(1) number limit: the number of trustees shall not exceed 50.
(2) the investment scope is limited
Advantages and disadvantages of contract funds:
1, advantages
(1) headcount advantage: the number of investors can be 1-200.
(2) Wide investment scope
(3) There is no double tax burden
(4) The establishment and change procedures are simple.
(5) Can be registered as a shareholder.
(6) diversified exit methods
2. Disadvantages
(1) Investment cannot be directly entrusted with loans.
(2) ABS cannot be directly established.
(3) Not qualified as a legal person
Above, there are still things you don't understand that can be further discussed, hoping to help you.