The forms of trust and contract fund are very similar, and there are similarities. However, under the current institutional framework of our country, there are significant differences between them in legal relationship, legal basis, supervision system and fund utilization mode. * * * 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: contractual (trust) fund, then this fund is a kind of generalized trust. Like trusts, contractual funds and trusts have most of the same characteristics, and the differences between them are as follows: 1, and the licenses are different: a trust license and a private fund management license. 2. Different supervision. Trust is supervised by CBRC, and contractual funds are supervised by the Securities Fund Association managed by CSRC. 3, the level of risk control is different, trust companies have a great career, countless products have been audited, and many companies come to ask for money every day, and the level of risk control will be much stricter. On the whole, the R&D process of the project is similar, and the development of contract fund companies is mixed, and the good risk control of contract fund companies can be compared with trust. 4. Contract funds cannot lend directly, and ABS (asset securitization products) cannot be directly established. Trust has no such restrictions. 5, the scope and flexibility of investment, but the contract fund involves more industries, a wider scope of investment, and flexible investment terms and methods. 6. At present, the market performance trust has broken the SGX, and the continuous decline in income is the general trend. Contract funds have developed rapidly and become the main investment varieties in today's market.