We believe that the unicorn fund has the following three major risks due to its closed operation:
1. Valuation risk
Unicorn Fund mainly invests in enterprises that return to A shares through CDR. These enterprises have been listed overseas for some time, and their valuations have risen many times compared with those at the time of listing.
After returning to A shares, its valuation premium will be further enhanced. As the valuation of CDR company is getting higher and higher, the risk will be bigger and bigger.
2. Market risk
After the unicorn fund was put on sale, many people called this kind of behavior blood drawing or money circling, which actually made sense.
As more and more unicorn enterprises go public, huge financing will put pressure on market funds, and once the strategic placement of shares is lifted, the pressure on secondary market funds will be even greater.
3. Liquidity risk
All six unicorn funds are closed for three years, and they can't quit halfway. If you suddenly need money one day, you can only transfer your fund share to others through on-site transactions.
According to the rules of floor trading, most of them need to be discounted when transferring, that is to say, the share with a value of 100 yuan can only be sold in 95 yuan.
Therefore, when buying a unicorn fund, we must consider liquidity risk and plan idle funds.
Summary: Although the publicity of Unicorn Fund is very attractive, we should also see the risks behind it. After all, investment always has expected returns and risks.