What are the differences between funds and savings and deposits?

Source: Internet
Author: User
What are the differences between funds and savings and deposits?

Different in nature: funds are a type of benefit credential. fund managers only manage funds instead of investors and do not bear the risk of investment losses. bank savings and deposits are a type of liabilities of banks, banks are legally liable for the deposit. Different profits and risks: funds do not guarantee the security of the principal and may suffer losses. However, they also have the opportunity to share the benefits of the rise in the securities market. Bank loan interest rates are relatively fixed, investors have almost no possibility of losing their principal. Different degree of information disclosure: fund managers must regularly disclose the Fund's investment operations to investors, and banks do not need to disclose the use of funds to depositors.

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