The relationship between the parent fund and the sub-fund is a financial product, which is reflected in the following aspects:

1. investment relationship: the parent fund refers to the fund as the main body, and realizes fund dispersion and risk control by investing in other funds (i.e. sub-funds). As an investor, the parent fund indirectly holds the assets invested by the sub-fund by purchasing the shares of the sub-fund.

2. Management relationship: There is a management relationship between the parent fund and the sub-fund. The manager of the parent fund is responsible for managing and operating the whole fund product, including selecting and managing sub-funds, formulating investment strategies and risk control measures, etc. The manager of the sub-fund is responsible for specific investment decisions and asset allocation.

3. Risk relationship: There is a risk relationship between the parent fund and the sub-fund. The risk degree of the parent fund is affected by the investment performance and market fluctuation of the sub-fund. If the sub-fund performs well, the value of the parent fund will increase; On the other hand, if the sub-fund does not perform well, the value of the parent fund may decline.

4. Income relationship: There is an income relationship between the parent fund and the sub-fund. The income of the parent fund mainly comes from the investment income of the child fund. When the investment performance of the sub-fund is good, the income of the parent fund will increase accordingly; Conversely, if the investment performance of the sub-fund is poor, the income of the parent fund may be affected.

In short, there is a superior-subordinate relationship between the parent fund and the sub-fund. The parent fund realizes capital dispersion and risk control by investing in the sub-funds, and also undertakes the management and risk of the sub-funds. This relationship embodies the characteristics of multi-level investment and risk management of fund products.

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