Sweater vs Fundrise Comparison

Assess their risks, liquidity, returns, and timeframes

Invest in venture-backed companies through a managed fund

Invest in private assets like real estate, private credit, and venture capital


Investments
$5,000

The minimum investment for Sweater's Cashmere Fund is $500.

Investments
$10

Fundrise allows a minimum investment of $10 for taxable accounts and $1,000 for IRAs.


High Risk
4/5

Investing in Sweater's Cashmere Fund, like any venture capital investment, carries inherent risks. These risks include market volatility, economic conditions, and challenges specific to the companies in which the fund invests.

Moderate Risk
3/5

Investing with Fundrise involves risks such as limited liquidity, potential modifications to the share repurchase program, market volatility affecting asset values, the possibility of total investment loss, and regulatory changes impacting operations.


Minimum Liquidity
1/5

Sweater provides biannual redemption windows for investors to access their investment before the end of the investment term. However, there may be restrictions and limitations on the redemption process.

Minimum Liquidity
1/5

Fundrise offers liquidity through its share repurchase program, allowing investors to redeem shares quarterly with no penalties or costs.

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Low Return
4.08 %

The fund has achieved an annualized return of 4.08% since its inception.

Low Return
4.81 %

Investors on Fundrise can expect returns through dividends and appreciation, with an average income return of 4.81% over 7 years.


Long-term Investment
1-5 years

Sweater's Cashmere Fund is designed for long-term investments, but they provide biannual redemption windows for investors to redeem a portion or all of their investment.

Long-term Investment
5+ years

Fundrise is designed for long-term investments, ideally for a period of 5 or more years, due to its focus on strategies aimed at long-term return potential.


Who can invest
United States

Any U.S. resident over the age of 18 with a Social Security Number (SSN) is eligible to invest in Sweater's Cashmere Fund.

Who can invest
United States

To be eligible to invest with Fundrise, individuals must meet several criteria: they must be at least 18 years old, have permanent residency in the United States, possess a valid U.S. tax ID, and file taxes in the U.S. The platform is open to both accredited and non-accredited investors.


Moderate Volatility
3/5

The assets on Sweater's platform, including the investments made by the Cashmere Fund, can be subject to volatility.

Moderate Volatility
3/5

Assets on the Fundrise platform, such as private real estate and venture capital, typically show lower volatility compared to public stocks and bonds, due to less frequent valuation updates and reduced exposure to daily market swings.


Regulation and audits
SEC Regulated

Sweater operates under SEC regulations, allowing them to accept investments from non-accredited investors.

Regulation and audits
SEC Regulated

Fundrise is regulated by the SEC and must comply with strict reporting, disclosure, and operational standards. It undergoes regular independent audits to verify financial accuracy, legal compliance, and the effectiveness of its internal controls, ensuring transparency and integrity in its operations for investor protection.


Insurance
No

Specific details about Sweater's insurance policies are not available on their website.

Insurance
No

Investments on Fundrise, including real estate and alternative assets, are not insured by the FDIC or any other government agency, exposing investors to the risk of loss without insurance protection.


Payouts
No Recurring Payouts

According to Sweater's website, the Cashmere Fund does not pay dividends to investors.

Payouts
Dividends

Dividends are paid quarterly, based on income from portfolio projects, and can be either reinvested or cashed out. Appreciation comes from increases in the value of the investment, reflected in the net asset value (NAV) of shares. Returns start accruing after investment settlement, typically within 5 business days, and can be tracked on the Investor Dashboard.


Extra Fees
No

Sweater's Cashmere Fund charges a fee of up to 2% for redeeming investments during the semi-annual redemption windows.

Extra Fees
Yes

Fundrise charges a 0.15% annual advisory fee, a 0.85% management fee for real estate funds, and a 1.85% management fee for the Innovation Fund. Early liquidation of eREIT or eFund shares before 5 years incurs a 1% penalty.


Taxes
Annual Statement

Venture funds, like Sweater's Cashmere Fund, generally provide tax reporting support to investors.

Taxes
Tax Form

Fundrise investors can expect Form 1099-DIV for eREITs or interval funds with distributions over $10, Schedule K-1 for eFund shares, and Form 1099-B for liquidated shares. Tax documents are issued at the end of January for 1099-DIVs and mid-March for K-1s, available on the investor dashboard. Multiple funds in a portfolio may result in receiving multiple tax forms.

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