The risks of trust products are concentrated in the following two aspects:
1. Investment risks of trust funds
People who invest in project trust products such as securities market and real estate market will have higher risks. On the contrary, projects with low risks and relatively low returns, such as infrastructure construction, company equity pledge, electricity, energy and a series of projects supported by the government.
2. Risk control measures
(1) The enterprise strength and credit of the guarantor. Generally speaking, the guarantee companies of large state-owned enterprises are the safest. In addition, large private enterprises with high credit and low debt ratio can also be considered.
(2) the security of the pledge and whether it is easy to realize. The lower the pledge rate, the higher the security. Relatively speaking, stocks, equity, bonds and currencies are relatively easy to realize, while real estate such as land is poor in liquidity and difficult to realize in a short time.
Is trust investment reliable?
Trust investment can't be completely reliable. Trust investment is relatively safe. Trust business is a legal act based on credit, involving three parties: the trustor who invests in credit, the trustee who grants credit to others and the beneficiary of income and person. Among them, the sources of funds are mainly personal funds with specific purposes and trust funds entrusted by the financial department for investment or loans.
What are the conditions for trust investment?
The conditions for trust investment are:
1, with approved project documents;
2, there are implemented investment funds, leaving no gap;
3. Have a broad product sales market;
4. Good supply conditions;
5. Advanced technology and equipment;
6. Have a high-quality enterprise.
What are the general characteristics of trust investment?
Trust investment generally has the characteristics of large investment, long term, strong technology and high risk. The investment budget of trust investment projects should be correct and all investments should be implemented. This is to prevent the formation of semi-finished projects, so that investment projects can be completed and put into production on schedule, and the expected benefits can be achieved.
Generally, cash investment in RMB and foreign currency can be adopted; Invest in the form of movable property or immovable property in kind, and invest in intangible assets such as special technology, patents and copyrights.
What are the advantages and disadvantages of debt investment?
The advantages of trust are low risk, high income and wide investment field.
The disadvantage of trust is that the liquidity is too poor and the threshold is relatively high. Poor liquidity means that the term is inflexible, and the shortest term of trust products is 12 months, 18 months, 24 months or less. Interest payment methods are generally quarterly, semi-annual and annual. Then half-year and annual interest-paying products account for almost 70%. So it will be more difficult for investors to cash out. Then it is difficult to find a third-party investor in the trust company to handle the transfer procedures. A relatively high threshold means that trust products are used to manage money for the rich because they are private. Private placement needs 1 10,000 to start, so the threshold of trust is 1 10,000, but in many cases 1 10,000 cannot be bought. Because there is a second requirement for trust products, that is, there are only 50 places from 1 10,000 to 3 million, which often leads to a relatively large financing scale of a project, and it is difficult to buy funds below 3 million.