Private equity fund is a collective investment that raises funds from specific investors in a non-public way, as opposed to Public Offering of Fund. Its characteristics are basically the opposite of public offering, and only certain investors with certain conditions can participate in the subscription; The number of people is strict; At present, the field of private equity funds in China is in a vague area, and the supervision is very weak; Small asset scale; The fund operates very flexibly. At present, the classification of private placement in China mainly includes: (1) private securities investment fund, also called sunshine private placement after sunshine, private equity investment fund (PE, which invests in the shares of unlisted companies, represented by IPO), private venture capital fund (VC, which is risky, such as some angel funds) and a small number of private real estate investment funds.
Hedge fund refers to a financial fund that combines financial derivatives such as financial futures and financial options with financial institutions, takes high-risk speculation as a means and aims at profit, so it is also called arbitrage fund. This kind of fund can carry out two-way operation, buy low and sell high to earn spreads and gain income, which can effectively avoid risks and is much more flexible than one-way operation funds. At present, this field has just started in China, and it is in a gray area like private equity funds, and the government's monitoring is insufficient.
Industrial investment funds generally point to unlisted enterprises with high growth potential to invest in equity or quasi-equity, and participate in the operation and management of the invested enterprises in order to realize capital appreciation through equity transfer after the invested enterprises mature. According to the different stages of the target enterprise, industrial funds can be divided into seed stage or early stage funds, growth stage funds, restructuring funds and so on. Venture capital fund (VC) and private equity investment fund are collectively called industrial investment funds abroad. Because the assets of the fund are mainly industrial stocks or industrial bonds, it is very important to have a good strategic vision.
Trust is a kind of legal act, which refers to the act that the principal entrusts his property rights to the trustee based on his trust in the trustee, and the trustee manages or disposes in his own name for the benefit of the beneficiary or for a specific purpose according to the wishes of the principal. The Nobel Prize is a typical case of confidence. Trust is similar to private placement in many aspects, with no publicity, quick fundraising (usually about two weeks), small amount of funds and various forms of projects. Credit is the most important factor, so the biggest risk faced by trust products is credit risk. At present, China has promulgated the trust law to regulate this behavior. Therefore, in terms of supervision, it is stricter than private placement supervision.
These funds belong to a broad concept and can be divided into many categories, including some product portfolios with low yield and guaranteed capital, and some radical product portfolios with high relative yield. Therefore, when you want to invest in funds, you should still analyze your risk tolerance, assets, product structure of specific funds, investment period and other related information.