# Fund Vintage

*Startups & Venture Capital — Finicade finance glossary*

A fund's vintage is the year it began investing, and it explains an enormous share of returns. Funds that deployed into a downturn buy cheaply and sell into recovery; funds that deployed at a peak do the reverse. Because vintage is largely luck, sophisticated LPs commit steadily across years rather than trying to time entry into a decade-long illiquid commitment.

**Also known as:** vintage year, vintage

**Related terms:** [J-Curve](https://finicade.com/glossary/j-curve), [Limited Partner](https://finicade.com/glossary/limited-partner), [Dry Powder](https://finicade.com/glossary/dry-powder), [General Partner](https://finicade.com/glossary/general-partner), [IRR (Internal Rate of Return)](https://finicade.com/glossary/irr)

Source: https://finicade.com/glossary/fund-vintage