As far as I know, trust funds are usually also called investment funds, which refers to pooling the funds of most uncertain investors in society through contracts or issuing fund bonds by companies, and then forming a certain scale of trust assets. It is a collective investment mode of "benefit sharing and risk sharing". After understanding the meaning of trust funds, let's take a look at the characteristics of trust funds:

First, it has the nature of financing and flexible methods.

Trust funds have the nature of financing, which is simply "entrusted by people to manage money on their behalf", which is very similar to financial management funds. However, trust funds, like bank custody, have independent credit granting methods. The investment mode of trust funds is very flexible and can meet the needs of society. Moreover, the business activities of trust funds are also very flexible, which can meet the different needs of investors.

Third, the trust property is independent.

The property of the trust fund is independent. When entrusting others to manage and invest their own property, we should strictly distinguish between trust property and trustee's inherent property, and also distinguish between trust property entrusted by different principals and keep accounts separately, so as to ensure the interests of principals and beneficiaries and urge trustees to dispose of trust property fairly and reasonably.

Generally speaking, the meaning of trust fund is not difficult to understand, and you can get a more comprehensive understanding through its definition and characteristics. Investors should note that the trustee of the trust fund does not need to take risks. Once the trust fund loses money, the beneficiary needs to bear the loss himself.