1. What are public funds?

Everyone usually talks about buying funds. In fact, most people are talking about buying public funds. Let’s break down the four words of public funds:

Public offering refers to the fact that the source of funds for this type of fund is publicly raised from the general public, and there are no strict requirements for the qualifications of investors, so everyone can buy it in banks and on Alipay. , WeChat can also be purchased, and can be purchased at some securities companies and third-party wealth companies. What funds mean is that what everyone buys is called a fund. A fund is a financial investment product. There are many types of financial investment products, such as bank deposits, life insurance, stocks, futures, trust products, etc. Funds are one of them.

2. What is a private equity fund?

Private equity funds refer to securities investment funds that raise funds from specific investors in a non-public manner and target specific investment targets. Compared with public funds, private equity funds cannot conduct public sales and promotions, have high investment quota requirements, and the qualifications and number of investors are often strictly restricted.

Extended materials

1. Public funds and private funds have different issuance methods to investors. As the name suggests, public funds are issued to the public, that is, they are promoted to investors in the whole society and investors who purchase public funds are public investors in society; private funds, as the name suggests, are not publicly issued, and the issuance objects and investor goals are specific investments. Investors are those investors who have capital or investment ability restrictions, and the number of investors will be limited based on the product. Under normal circumstances, the cumulative number of investors in a private equity fund shall not exceed 200, the amount invested by an investor in a single private equity fund shall not be less than 1 million, and the net assets of the unit shall not be less than 10 million or the personal financial assets shall not be less than 3 million or The average annual income is not less than 500,000.

2. The investment directions of public funds and private funds are different. Public funds are mainly based on the stock market, covering bonds, currencies and some overseas assets. From the name, they can be divided into partial stock funds and partial funds, and the investment types, proportions and matching degrees of public offerings are strictly limited; private equity funds invest according to the agreement, involving other financial products such as stock markets, futures, funds, and equity, and Private placement is more flexible and can be agreed upon through an agreement.

3. The degree of strictness of supervision and management of public funds and private funds is different. Public funds must accept strict regulatory requirements and have relatively strict legal restrictions. Investment information and other content must be disclosed in accordance with fund management regulations, and public transparency is high. Private equity funds only implement a filing system, and investors can query relevant information through a dedicated website, which maintains strong confidentiality. Most private equity fund investors have no idea where the private equity fund they invested ultimately invested their money.

4. The risks and returns of public funds and private funds are different. Public funds have greater liquidity than private funds. Public funds can be redeemed (sold) at any time as long as the market is open, while private funds can only be redeemed during the open period; public fund companies have several An investment research team of ten to several hundred people provides strong backing for the fund manager's investment. It has a strict investment process and a complete risk control system. Private equity funds have a smaller investment research team than private equity funds; public equity funds generally can run well in a bull market. Winning private equity, but private equity is flexible, high risk and also brings greater returns.