The management policy of such investment funds is to pursue high returns in high risks. Most funds participate in investment in the form of shares. The main purpose is to help the invested enterprises mature as soon as possible and obtain the listing qualification, so as to achieve the purpose of capital increase. Once the company's shares are listed, venture capital funds can recover their funds through equity transfer in the securities market and continue to invest in other companies.
Extended data:
Principle of income distribution
1. On the premise of meeting the dividend conditions of relevant funds, the maximum number of income distributions of the Fund is 12 times per year, and the proportion of each income distribution is not less than 20% of the distributable profit. If the fund contract takes effect less than 3 months, no income distribution may be made.
2. There are two ways to distribute fund income: cash dividend and dividend reinvestment. Investors can choose cash dividends or automatically convert cash dividends into fund shares for reinvestment. If investors do not choose, the default income distribution method of the Fund is cash dividend.
3. After fund income distribution, the net value of any fund share cannot be lower than the face value, that is, the net value of fund share minus the income distribution amount of each fund share on the base date of fund income distribution cannot be lower than the face value.
4. Since Class A fund shares of the Fund do not charge sales service fees, while Class C fund shares charge sales service fees, the distributable profits corresponding to each fund share category will be different, and each fund share in the same category of the Fund enjoys equal distribution rights.
Fund risk type
Credit risk: including the credit risk of bonds, bills and other instruments invested by the fund itself, as well as the door-to-door risk of investment based on transactions, such as repurchase agreements.
Market exposure risk: market exposure risk refers to the actual market value of money market funds, that is, the risk that the net value of funds valued by market method deviates from the transaction price of funds (usually the face value of funds).
Policy risk: Changes in national macro policies, such as fiscal policy, monetary policy, industrial policy, regional development policy, etc., lead to market price fluctuations, affect fund returns, and generate risks.
Economic cycle risk: With the cyclical change of economic operation, the income level of the securities market also changes periodically, and the income level of fund investment will also change accordingly, resulting in risks.
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