Private equity funds, with their flexible investment methods, personalized services, and more and more considerate services that are closer to private financial management, have attracted the favor of many investors, especially those with large funds. Here, investors are reminded to pay attention to the following matters when choosing private equity funds:

First, understand the capabilities of fund managers. We all evaluate whether the fund manager has the ability based on the fund manager's past experience and performance. Investors can consult to find out whether the fund manager has formal working experience and what the reputation is in the industry. At the same time, whether the performance of fund managers in the past is stable, especially in bull and bear markets, whether the investment performance of fund managers can outperform the market. The core figures of private equity funds mainly come from three categories: excellent public fund managers, securities dealers and private individuals. Analyzing from the perspective of background, the performance of private equity funds managed by fund managers with public fund backgrounds is significantly better than that of securities firms and fund managers with private backgrounds, such as Danshuiquan Series (Zhao Jun), Shangya Series (Shi Bo), Xingshi Series ( The performance rankings of private equity funds such as Jiang Hui (Jiang Hui) and Wudang Series (Tian Ronghua) are all in the middle and upper reaches.

Second, whether your own investment style is consistent with that of the fund manager. Investors need to understand whether the fund manager's investment style suits their own requirements and meets their risk preferences. Special emphasis is placed on the investment strategy of the fund manager. Is it active, prudent or conservative? Investors need to understand these carefully and combine this with their own risk tolerance. Since there are currently no specific laws and regulations to regulate private equity funds, there are no restrictions on the investment of private equity funds. Fund managers can flexibly choose targets, not only investing in stocks, but also in futures, foreign exchange, gold, etc. Investors need to determine in the contract which products they need to invest in.

Third, understand the size of the investment fund and the entry threshold. Each fund has its own size, which is related to the investment plan. Private equity is a relatively high-yield but also high-risk investment method, and investors' risk tolerance must be considered.

Fourth, understand the operating model of the investment company. There are many types of private equity models, some are agreement-based without transferring capital ownership, some are corporate, and some are partnerships. But most of them are trust-based at present. When the legal system is not perfect now, the law requires that fund trusts must be held in custody. Relatively speaking, the moral hazard is relatively low.

Fifth, the risk control capabilities of investment management companies. A relatively standardized company will have their own set of risk control systems. From individual stock selection to the occurrence of emergencies, they have their own set of processes to reduce avoidable risks.

Sixth, the method of division. Investors should not look solely at the rate of return, because a high rate of return does not necessarily mean that their return on investment will be high. They also have to look at the share ratio. Generally, the sharing ratio will be agreed on a guaranteed expected rate of return. Generally speaking, the more detailed the rate of return stages are, the better. Investors can have a clear understanding of their own returns in a timely and detailed manner.

Seventh, consult third-party agencies. When investors choose a target investment management company, they can learn about the products through third-party research institutions. Third-party research institutions conduct quantitative and qualitative research on the entire Sunshine Private Equity product, and classify stars accordingly. Investors can understand product information from a more objective, true and fair perspective.