1. Advantages and disadvantages of Public Offering of Fund:

1. Advantages:

Public Offering of Fund is the most transparent and standardized fund. Public Offering of Fund has strict regulations on the qualifications of fund management companies, as well as the custodians of fund assets. The fund custodian is actually a bank in China, because its registered capital must reach 8 billion yuan. Closed-end Public Offering of Fund also publishes its net asset value once a week and its portfolio every quarter.

Because Public Offering of Fund is in broad daylight, it has to be strictly supervised by the regulatory authorities. Therefore, generally speaking, Public Offering of Fund's asset security is safer and easier to accept.

2. Disadvantages:

(1) The rapid development of the fund industry and the relaxation of policies encourage the innovation of fund products, and various fund companies compete to launch new products to attract investors' attention. From the sales situation, investors' recognition of fund innovation is also significantly higher than that of fund products lacking innovation.

(2) Due to the safety and risk requirements of institutional investors such as social security funds and individual investors, low-risk products have been widely favored, prompting fund companies to pay attention to the development of capital preservation funds, money market funds and other products. However, compared with the mature foreign fund market, there are still some problems in China's fund market, such as similar fund holdings, unclear features of newly raised funds, and insufficient variety.

2. Advantages and disadvantages of private equity funds:

1. Advantages:

(1) Private equity funds are generally closed-end partnership funds and are not listed and circulated. During the period of fund closure, partnership investors can't withdraw funds at will, and the closure period is generally 5 to 1 years, so the operation period is stable and there is no pressure to redeem funds.

(2) Compared with the strict information disclosure requirements in Public Offering of Fund, the requirements of private equity funds in this respect are much lower, and the government supervision is relatively loose, so the investment of private equity funds is more hidden and professional, and the return on income is usually higher.

(3) The success of fund operation is closely related to the fund manager's own interests, so the fund manager has a strong sense of professionalism and can attract specific investors with his unique and effective operating concept. The cooperation between the two parties is based on a kind of trust and contract, so there is little moral hazard.

(4) The investment target is more targeted, and the investment service products can be customized for customers to meet their special investment requirements. For example, Soros's quantum fund not only invests in the global stock market, but also invests heavily in foreign exchange and futures, creating a high rate of return.

(5) The organizational structure is simple, the operating mechanism is flexible, and the freedom of daily management and investment decision-making is high. Compared with the complicated bureaucracy, private equity funds have obvious competitive advantages at the critical moment when opportunities are fleeting.

2. Disadvantages:

(1) The stock that is not publicly issued has poor liquidity and cannot be publicly transferred and sold in the market; Due to the non-public way to raise funds, the entry threshold is high, and the target is generally a few specific investors.

In this way, if investors withdraw their funds or make other major changes, the risks are also greater.

(2) Similarly, because the target is a small number of investors, the information disclosure is relatively loose, and there is a danger of being bargained and controlled.

Extended information:

The difference between Public Offering of Fund and private equity funds:

1. The objects raised are different. Public Offering of Fund's fund-raising target is the general public, that is, investors who are not specific to the society. Private equity funds are targeted at a few specific investors, including institutions and individuals.

2. There are different ways to raise funds. Public Offering of Fund raises funds through public offering, while private equity funds raise funds through non-public offering, which is the main difference between private equity funds and Public Offering of Fund.

3. Information disclosure requirements are different. Public Offering of Fund has very strict requirements on information disclosure, and its investment objectives, portfolio and other information should be disclosed. Private equity funds, on the other hand, have low requirements for information disclosure and strong confidentiality.

4. Different investment restrictions. Public Offering of Fund has strict restrictions on investment varieties, investment proportion and matching between investment and fund types, while the investment restrictions of private equity funds are completely stipulated in the agreement.

5. Different performance rewards. Public Offering of Fund does not extract performance compensation, but only collects management fees. Private equity funds, on the other hand, charge performance compensation and generally do not charge management fees. For Public Offering of Fund, performance is only the honor when ranking, while for private equity funds, performance is the basis of remuneration.

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