Trust products are safer and less risky than funds. Trust is supervised by China Banking Regulatory Commission (CBRC). The fund is supervised by the Securities and Futures Commission.
Extended data:
At present, in addition to securities companies, fund companies and trust companies, there are also third-party wealth management companies. In a sense, the expansion and positioning of third-party wealth management companies in the asset management market are somewhat similar to those of today's private equity funds, and the expert financial management and flexible cooperation terms are bundled and grafted as a breakthrough to open the asset management market.
Trust business is flexible and adaptable, which is conducive to invigorating the economy and strengthening economic and technological cooperation between regions; It is conducive to absorbing domestic and foreign funds and supporting the equipment renewal and technological transformation of enterprises.
Trust business mainly includes two aspects: entrustment and agency. The former means that the property owner entrusts his property to others for the benefit of himself or his designee, and asks him to manage and operate it properly for a certain purpose; The latter refers to some economic affairs that one party authorizes the other party to handle on its behalf.
References:
Baidu encyclopedia-trust