The target of public offering funds is the general public, that is, investors who are not specific to society. Any individual or institution that meets the requirements of laws and fund contracts can purchase publicly issued funds. Public Offering of Fund is suitable for ordinary investors who don't have much professional knowledge and time and energy to study the market and individual stocks.

Private equity funds are raised by a few specific investors, including institutions and individuals. Private equity funds have high thresholds and standards and can only be issued to qualified investors. Qualified investors refer to investors who have the corresponding ability to identify risks and bear risks, and meet the requirements of certain financial situation or investment experience. Private equity funds are suitable for professional investors with high wealth and strong risk tolerance.