What is a start-up fund? What are the advantages of sponsorship funds? Sponsored fund refers to a fund established by fund managers, fund company shareholders and executives as fund sponsors and subscribing for a certain amount of funds. It binds the interests of investors and fund issuers, improves the responsibility of fund managers and helps to enhance investors' confidence.

Advantages of sponsorship funds

1, benefits are tied, and risks * * * achieve * * win;

2. Initiate long-term holding of funds to enhance investors' confidence and recognition;

3. It is conducive to ensuring the stability and continuity of the fund scale and performance;

4. It is helpful to realize the benign development of promoting scale through performance.

How about starting a fund?

Sponsorship funds are not all positive incentives for managers, but also have potential negative effects. For example, interest bundling may affect the investment style and enterprising spirit of fund managers, from risk preference to risk aversion, especially in the equity market. Too conservative may easily lose the courage to trade on the left in the short term, which may reduce the performance of the fund. Funds with fixed expected annualized expected returns generally have no impact in this regard.