China-Europe small and medium-sized fund refers to fund products invested in small and medium-sized enterprises in China and Europe. Central Europe includes Central European countries and some Eastern European countries, such as Poland, Hungary, Czech Republic and Slovakia. Small and medium-sized enterprises refer to enterprises with small market value and relatively small scale.

Small and medium-sized funds in China and Europe are usually issued and managed by professional fund management companies, and investors can buy fund shares for investment. The operation mode of the fund is to pool investors' funds, and the fund management company constructs the investment portfolio, allocates assets and obtains the return on investment.

The investment target of China-Europe small and medium-sized funds is special, characterized by relatively small enterprises, but with high growth potential and innovation ability. These enterprises are usually just starting or developing rapidly, with high growth and high expected return on investment. Investors can share the benefits of the growth of these enterprises by buying small and medium-sized funds in China and Europe.

Investment strategies of China-Europe small and medium-sized funds The investment strategies of China-Europe small and medium-sized funds mainly include:

Value investment: China-Europe Small and Medium-sized Foundation looks for small and medium-sized enterprises that are undervalued by the market. Due to various reasons, such as low market awareness and neglected industries, the share prices of these enterprises may be lower than their actual value. Fund managers will look for these undervalued enterprises through in-depth research and analysis, so as to invest in them before the market gradually finds their value. Growth investment: China-Europe small and medium-sized funds will also pay attention to those enterprises in the growth stage. Generally speaking, these enterprises have high growth potential, but their market value is very small and they have not received public attention. The fund manager will evaluate the competitive advantage, market prospect and the ability of the management team, and choose small and medium-sized growth enterprises with potential to invest. Diversified investment: China-Europe SME Foundation reduces risks by diversifying investment in many SMEs. Because small and medium-sized enterprises have certain risks, a company's performance decline or problems may have an impact on the fund's investment. By diversifying investment, the fund will spread its investment funds to multiple enterprises to reduce the overall risk. Investment risks and returns of China-Europe small and medium-sized funds The investment risks of China-Europe small and medium-sized funds mainly include:

Market risk: China-Europe small and medium-sized funds invest in small and medium-sized enterprises, with small market value and scale, which are easily affected by market fluctuations. In the case of market instability or decline, the share price of SMEs may be greatly affected. Enterprise risk: The enterprises invested by small and medium-sized funds in China and Europe are small in scale and have relatively high operational risks. Some small and medium-sized enterprises have some problems such as poor management, great competitive pressure and insufficient technological innovation ability, which may lead to the decline of enterprise performance or operational difficulties. Liquidity risk: the liquidity of small and medium-sized funds in Central Europe is relatively weak, because they invest in the stocks of small and medium-sized enterprises, and the trading volume of these stocks is small, so they may face higher transaction costs and lower liquidity when buying and selling. The return on investment of China-Europe small and medium-sized funds mainly comes from the growth of small and medium-sized enterprises and the improvement of profitability. If fund managers can accurately grasp the development trend of small and medium-sized enterprises and have strong stock selection ability, then the return on investment may be higher. There are still some risks in investing in small and medium-sized funds in China and Europe. Investors should choose according to their risk tolerance and investment objectives.