Before water fund, first the objective of the water supply issue should be determined. The goal of fund itself is financial investment for investors to seek high returns, and the unique characteristic of water industry determines the long-term and stable investment returns of water supply industry. So the water supply industry is wheather a strategic investment or financial investment is still in question
It is significant to identify the objectives of water venture capital funds. Given a fact that the nature of urban water sectors requires long-term and stable invesments with lower profit returns, it is argued that the venture capital funds for urban water sector can't be applied as regular financial investment which pursues higher profits for investors, but as strategic invesments.