Frequently Asked Questions - Everbest Investment

What’s the difference in terms of taxation between a trust product bank deposits?

Earnings from trust products are tax-free; in contrast, bank deposits are subject to interest tax.

Is there any risk involved in the subscription money for a trust?

Trust plans are protected by the Chinese trust law and under the supervision of four parties: the trustee, the investment advisor, the custodian bank and the custodian securities firm. The capital is deposited at a dedicated assets account at the custodian bank, and its security is absolutely guaranteed. However, any investment comes with risks, and investors are advised to select investment instruments that suit custom needs by considering their own risk tolerance.

What’s the difference between securities investment trusts & securities investment funds?

Compared with securities investment funds, securities trust can invest in corporate shares and securities investment funds, in addition to outstanding shares. It’s more advantageous than funds because the trustee charges a floating management rate only when earnings reach a certain threshold. In addition, redemption is free of charge. Further, there are restrictions on the scale and number of units for securities investment trust products.