Profit sharing is a form of investment cooperation for customers who seek outstanding profitability targets and willingly bear risks from ineffective investing. With this form, investors will share both profits and risks with Passion Investment.
Base profit or a sure minimum rate of return for customers is 6% per annum.
Performance reward fee: 20% on the profit in excess of the target profit. If the rate of return exceeds 6%, customers will receive 80% on the profit exceeding the base rate of 6% and the remaining 20% will be rewarded to Passion Investment.
Investment cooperation period: At least one year.
Demonstrations Of Cooperation Forms
Customer A decides to set up 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 0-6%, 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 80-20. He will take 80% on the surplus (or 11.2%) and Passion Investment will keep 20% on the surplus as performance reward fee (or 2.8 %). Finally, Customer A earns a rate of return of 17.2%.
- Scenario 3: If the investment takes a loss, Customer A will bear all the loss.