Trust funds, also known as investment funds, raise idle funds from various channels such as society by issuing fund securities in the form of agreements or companies, and hand over these assembled and large-scale trust assets to specialized institutions for investment and care. In this centralized management and investment mode, trading decisions are made in their own names, and investors and institutions bear risks and benefits.

What is a trust fund?

A trust fund is an investment trust. Trust institutions collect funds from the society by issuing fund bonds, and entrust the raised funds to professional investment and financial institutions and experts for operation and management. These investors and trusts * * * enjoy the benefits * * * and take risks. Trust funds are mostly used to invest in industrial fields, generally investing in infrastructure, real estate and public utilities. The business models of these industries are already mature and have certain market monopoly. The sources of trust funds are limited, and it is impossible to invest in multiple projects at the same time. Therefore, the general investment funds mainly come from loans, and the trust period is relatively short, up to one or two years.