Most people never care whether the fund is public or private, as long as they can make money. But what these people don't know is that if you buy a private equity fund, then you need to pay attention!

Funds can be divided into Public Offering of Fund and private equity funds.

Public offering funds refer to securities investment funds that raise funds from public investors in an open way and invest in securities. Public Offering of Fund raises funds from public investors in an open way, which can be publicly issued to the public through direct sales of fund companies and third-party consignment, while private equity funds cannot be publicly issued, and can only be raised from specific qualified investors.

Public Offering of Fund, as a product of inclusive finance, usually has a relatively low threshold for purchasing funds, while private equity funds require investors to have a high risk identification ability and risk-taking ability, and the corresponding threshold for purchasing funds is relatively high, requiring hundreds of thousands of yuan to start.

Public Offering of Fund is relatively more transparent. Through quarterly reports, semi-annual reports, annual reports and other regular reports, the relevant information about product investment and operation is published regularly, while private equity funds only disclose product information to specific qualified investors, and the disclosure content is not publicly released.

Public Offering of Fund is strict in risk control and compliance, with relatively more restrictions in the investment process, while private equity funds are more flexible. For example, the investment direction and available investment tools of Public Offering of Fund portfolio are relatively simple, which are agreed in advance in the contract, so it is difficult to change them directly in the investment process. Private equity portfolios usually have fewer agreements and are more flexible in the use of investment tools.

The charging mechanism in Public Offering of Fund is different from that of private equity funds. Public Offering of Fund's income mainly comes from fixed management fees, and the income of private equity funds mainly comes from floating management fees (performance commission).

From the above comparison, we can know that Public Offering of Fund is suitable for our investment, while private equity funds are not necessarily suitable for our investment. There are not only Public Offering of Fund in the market, but also private equity funds. You must keep your eyes open when buying fund products.