From the perspective of investors, there are several major differences between public funds and private funds. These differences determine the choices of different investors. The main differences are as follows.

First, public funds and private funds issue funds to investors in different ways.

Public equity funds, as the name implies, 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 equity funds, as the name implies, are not publicly issued and are issued to the public. The investor targets are specific investors, those who have capital or investment ability restrictions, and the number of investors will be limited based on the product.

Second, 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.

Extended information:

The strictness of supervision and management of public funds and private funds.

Public funds must accept strict regulatory requirements and have stricter 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.

Risks and returns of public funds and private funds.

Public equity funds have greater liquidity than private equity funds. Public equity funds can be redeemed (sold) at any time as long as the market is open, while private equity funds can only be redeemed during the open period. Back; Public equity fund companies have investment research teams of dozens to hundreds of people to provide strong backing for fund managers’ investments. They have strict investment processes and complete risk control systems. Private equity funds have smaller investment research teams than private equity funds; public equity funds generally It can outperform private equity in a bull market, but private equity is flexible, has high risks and also brings greater returns.

Stock trading or fund trading is not really a multiple-choice question, but because the stock market has caused some retail investors to lose money, funds have taken advantage of the situation and promoted that stock trading is not as good as fund trading.

Whether you want to buy a fund does not necessarily mean you must be tempted by current performance, but you must rationally analyze three major factors:

First, the fund’s past performance does not represent future performance. Performance, this year's fund performance relies more on the good performance of the stock index. Although the stock market has had its ups and downs this year, the overall performance has been good, which has laid the foundation for the fund's good performance.

Second, this year, the outstanding performance of some industries has certain special characteristics, creating conditions and possibilities for good returns on fund investment. The structural development of these industries is not sustainable. It is only a phased and accidental factor. Therefore, it does not necessarily provide support for future fund investment income.

Third, although the overall investment income of the fund is good, it does not rule out that the investment income of some funds is still not ideal. Therefore, buying funds is still like stock speculation, with certain risks.