Advantages of public funds:

1. Low cost of capital

The investment threshold of public funds is very low, usually only 100 yuan is needed to start investing, basically Everyone can participate without any pressure. Public funds gather the scattered assets of many investors for investment, allowing everyone in society to earn profits from public fund projects.

2. Strict control

Among all investment and financial products, it can be said that public funds are the most strictly controlled. If there is a violation of regulations that violates the rights and interests of investors, then Will be subject to strict penalties from relevant government supervision agencies. This is because public funds are closely related to the daily lives of many ordinary people, have a large audience and spread to a wide coverage, so they are the top priority of the government to care and maintain.

3. Compatibility

As a public fund, it is best to disclose this point compared with other investment and financial products. Investors can see the net worth performance every day, and there are detailed quarterly reports for each quarter, which disclose the proportion of investment assets, main investment securities, generated expenses, etc., and disclose to investors the details of their purchases. The basic information of this fund is truly open to the public.

Disadvantages of public funds:

Public funds are strictly controlled by relevant government departments and are funds that openly raise funds for investors to invest in securities from the public. Because public funds involve the general rights and interests of our investors, they have wide implications, strict control, and many restrictions. There are often clear regulations on investment directions and position control. The disclosure requirements for private equity funds are not so strict. Only the necessary information needs to be disclosed, which provides strong security during the investment process.

Public equity funds are subject to the most restrictions on individual stock investment, such as a minimum holding of 60%. The positions of public equity funds are not as flexible and changeable as private equity funds. They can reduce positions or cover stocks, and can participate in several financial types of investment such as stocks, stock indexes, and futures. There are certain requirements for the investment proportion of public funds. of.