Guarantee of Minimum Profit

Guarantee of Minimum Profit

Choosing guarantee of minimum profit cooperation form, customers are guaranteed to receive a sure rate of return of 6% a year regardless of how the investment has performed. This investment form is suitable for customers seeking a higher rate income than placing money at banks but still securing investment capital.

Operating Mechanism

Guarantee of base profit or a sure minimum rate of return for customers is 6% per annum. In all cases, customers will receive a minimum rate of return of 6% per annum. If the rate of return is less than 6%, Passion Investment will compensate to ensure the rate of return of 6% they will get as promised.

Performance reward fee: 50% of the profit margin in excess of the base rate. If the rate exceeds 6%, the profit sharing will be 50-50 on excess value. Or in other words, customers will get 50% and Passion Investment will get 50% on excess value.

Investment cooperation period: At least one year.

Demonstrations Of Cooperation Forms

Customer A decides to set up investment cooperation with Passion Investment. After the cooperation period matures, the two parties will calculate investment performance and the following scenarios will occur:

  • Scenario 1: If the rate of return is 6%, the entire profit will be given to Customer A.
  • Scenario 2: If the rate of return is 20%, 6% will be given to Customer A and the remaining 14% will be divided 50-50. He will take 50% on the surplus (or 7%) and Passion Investment will keep 50% on the surplus as reward fee (or 7 %). Finally, Customer A earns a rate of return of 13%.
  • Scenario 3: If the rate of return is 2%, Passion Investment will compensate 4% to ensure that Customer A will get a minimum rate of return of 6%.
  • Scenario 4: If the investment takes a loss of 20%, Passion Investment will pay 26% to cover the loss and give a minimum rate of return of 6% to Customer A. Eventually, he still get 6% of returns.
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