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Relationship between parent fund and sub-fund

The relationship between the parent fund and the sub-fund is:

1. The parent fund is a fund, which consists of a package of funds, including many sub-funds.

2. A sub-fund is a fund owned by the parent fund and a part of the parent fund.

What is the relationship between parent fund and sub-fund?

The relationship between the parent fund and the sub-fund mainly includes:

1. investment strategy: the investment strategy of the general parent fund is the benchmark of the investment strategy of the sub-fund. For example, a basket of stock parent funds, its sub-funds may be stock sub-funds.

2. Investment scope: The parent fund usually invests in multiple sub-funds, so its investment scope includes all sub-funds. The investment scope of a single sub-fund is usually limited.

3. Asset size: A parent fund usually contains multiple sub-funds, so its asset size may be larger than that of a single sub-fund.

4. Performance management: the parent fund evaluates the performance of the sub-fund and takes the evaluation results as an important reference for investment decisions.

What is the relationship between parent fund and sub-fund?

The relationship between the parent fund and the sub-fund mainly includes:

1. Investment strategy: The investment strategy of the parent fund is relatively flexible. When the investment strategy of the sub-fund does not conform to the parent fund, the parent fund can choose to redeem the sub-fund.

2. Profit distribution: When the sub-fund has profits, it can distribute the profits in addition to deducting basic operating costs such as management fees and performance pay.

3. Performance reward: When the performance reward of the sub-fund reaches a certain standard, it may be necessary to pay remuneration to the parent fund.

4. Risk control: The investment strategy and portfolio of the sub-fund need the approval of the parent fund, so the risk of the parent fund is controlled to some extent.

5.*** Joint investment: The parent fund and the sub-fund can jointly invest to improve the investment effect.

6. Relevance: There may be a certain correlation between the rise and fall of the parent fund and the sub-fund, but it may also be different because of different investment strategies.

7. Capital relationship: There is a capital relationship between the parent fund and the sub-fund, that is, the investment income of the sub-fund will be reflected in the net value of the parent fund.

Generally speaking, the relationship between parent fund and sub-fund is complicated, including investment strategy, profit distribution, performance reward, risk control, investment, correlation and capital relationship.

Analysis of the relationship between parent fund and sub-fund

The relationship between the parent fund and the sub-fund is analyzed as follows:

The parent fund is the sum of the sub-funds, that is, A is the investment scale of the parent fund, B 1, B2, B3, etc. They are all sub-funds, that is, the parent fund realizes indirect investment by investing in multiple sub-funds B 1, B2, B3, etc. , usually A >: B 1+B2+B3+ ... The investment income of the parent fund comes from the sub-fund, which will have an impact on the parent fund.

Sub-fund is a fund invested by the parent fund, which is specially invested for the parent fund, that is to say, sub-fund is a fund focused on investing in the parent fund.

This is the relationship between the parent fund and the child fund.

Overview of the relationship between parent fund and sub-fund

The relationship between the parent fund and the sub-fund can be described in the following ways:

1. Primary relationship: the parent fund invests in the sub-fund as the primary market, including the investment income of the sub-fund, and further expands the asset scale of the parent fund.

2. Two-tier relationship: the investment income of the sub-fund is used for the investment of the parent fund, and so on.

Through this relationship, the parent fund and the sub-fund realize the burden of risk and income, and at the same time realize the amplification of investment income. This relationship is widely used in private equity investment.

This is the end of the introduction of the article.