The investment strategies of equity investment funds are various, including growth investment, restructuring and refinancing, and mergers and acquisitions. Equity investment funds can provide investors with high-risk and high-return investment opportunities by deeply understanding the operating conditions, industry prospects and potential value of the target company.
The income distribution of equity investment funds is based on the management agreement of investment funds. Investors and the fund management team agree on the investment objectives, strategies and income distribution methods of the fund in the agreement. Generally speaking, equity investment funds adopt the "2/20" charging mode, that is, fund management companies charge 2% management fees and 20% performance fees.
The management fee is charged according to the percentage of the total size of the fund, which is used to pay the operating expenses of the fund management company and the wages of the daily management personnel. Performance compensation is calculated according to the fund's rate of return. When the fund's rate of return exceeds a certain benchmark level, the management company will receive additional compensation. This charging model helps to motivate the fund management team to obtain higher returns for investors.
In the income distribution of equity investment funds, investors usually enjoy priority distribution rights. This means that before the fund income exceeds a certain level, investors will first get a certain proportion of distribution income. The income sharing between fund management companies and fund investors is usually divided according to a specific proportion, such as 80% for investors and 20% for fund management companies.
The income distribution of equity investment funds may also include other special terms. For example, a fund management company may get extra income when the fund withdraws from the investment to repay its efforts and risks during the investment period. Some funds may also set up a due diligence period, that is, within a certain period before the fund withdraws from investment, the management company will not distribute income to encourage it to hold and increase investment.
Fairness and justice are very important in the income distribution of equity investment funds. A fund management company shall allocate funds transparently and openly in accordance with the rules and standards agreed in advance. Investors should also actively participate in the decision-making and supervision of funds to ensure that their rights and interests are protected.
The income distribution of equity investment fund is based on management agreement, which provides investors with long-term capital appreciation and dividend income through investment strategy and professional management team. This form of investment can create higher returns for investors, but it also has certain risks. Investors should carefully evaluate the strength and risk-return characteristics of equity investment funds in order to protect their own rights and interests and asset safety.