Generally speaking, trust funds are suitable for the following four kinds of investors:
1. Investors who take securities investment as a sideline and have no time to take care of securities investment.
Most participants in the equity market have their own day job. The opening hours of the equity market are also the time when people are busiest with their work. Investors could appoint professional fund companies to manage their purchased funds, and reap the benefits without stress.
2. Investors who intend to invest in securities but lack of knowledge
Most investors, due to lack of securities knowledge, are short of ability to carry out in-depth and meticulous research on the securities market and listed companies. This makes investment like going blindfold with no direction, or it is wise to entrust professional trust fund companies with the work of operating the funds.
3. Investors with low risk tolerance
Most active investors in the current securities market are ones with small investment. If they spend their money on one or two stocks, the risk is too focused. If the investment is too scattered, too much efforts will be spent and the investment cost increases, making more losses than gains. Trust fund plays an important role of accumulating small money into huge chunks. The investment portfolio can be flexibly carried out in a way that it helps spread the risk and facilitates easy management.
4. Investors who hope to get long-term and stable profits rather than a huge fortune overnight
Different funds have dissimilar investment style, but all uphold the principle of long-term and rational investment. Pursuit of excessive profits means assumption of risks to a higher degree. In the securities market, trust funds are the major trend among institutional investors, though rate of return is not the highest but are in long-term and relatively stable.