What is the connection and difference between trust and fund?

Connection: Fund is essentially an extension and expansion based on trust business. As the holder of the fund share, he will hand over the property to the fund sponsor or fund manager for management by purchasing the fund share, and realize the preservation and appreciation through appropriate operations.

Difference: The difference between trust and fund lies in the difference of investment liquidity. Open-end securities investment funds have no big restrictions on the redemption and transfer of fund shares, while closed-end funds are usually listed on stock exchanges and have strong liquidity. As for the trust plan, it cannot be redeemed before the expiration of the trust period, but it can be transferred according to law, and its liquidity is poor.

Introduction:

Trust is the entrustment of credit, and trust business is a legal act based on credit, which generally involves three parties, namely, the entrusted trustee who invested in credit, the trusted trustee and the beneficiary who benefited from others. Trust business is that the trustor transfers the rights on the property to the trustee in accordance with the contract or will for the benefit of himself or a third party, and the trustee occupies, manages and uses the trust property in accordance with the prescribed conditions and scope, and disposes of its income.

Historical origin:

The trust system originated in Britain, and developed on the basis of the British "eustace system", and it has been several centuries. However, the modern trust system developed rapidly after it was introduced to the United States in the early19th century. The United States is the country with the most perfect trust system, the richest trust products and the largest total development.

Category characteristics:

Trust is a kind of financial behavior, which has the characteristics of property management and financing, as well as the combination of financing and finance. This is a kind of financial trust. It does not belong to the trading commission that the trading institution accepts the client's entrustment to engage in commodity trading.

Expand:

A fund in a broad sense refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations. From the accounting point of view, capital is a narrow concept, which refers to funds with specific purposes and uses. The funds we are talking about now mainly refer to securities investment funds.