What is a private equity fund? What's the difference with general funds? Maybe many people don't know much about private equity funds, so Bian Xiao specially brought you how to do private equity funds, hoping to help you.
What should private equity funds do if they explode?
Private equity fund is a kind of fund established and managed by private equity management company or private equity fund manager, and invested by raising funds from specific investors. Unlike Public Offering of Fund, the share of private equity funds is not open to the public, but to a limited range of investors.
When the private equity fund breaks out, it may cause the following countermeasures:
Contact the fund manager: As an investor, you should first contact the manager of the private equity fund to understand the explosion and the countermeasures taken by the manager. The manager will formulate the follow-up operation plan according to the specific situation and provide corresponding suggestions to investors.
Diversify risks and rationally allocate assets: short positions may bring great losses to the portfolio. Before the outbreak, investors can reduce the overall risk of portfolio by diversifying investment, rationally allocating assets and controlling risks.
Seek legal aid: If investors think that the fund manager is in breach of contract or other illegal issues, they can seek legal aid to safeguard their rights and interests. This may involve cooperating with lawyers, investigating related complaint procedures or seeking legal remedies.
Learn from experience: explosions can provide valuable lessons and experiences for investors. Investors can invest more carefully and reduce potential risks by examining their investment decisions, understanding the market environment and studying the background and risk control measures of fund management companies.
What will happen if the fund explodes?
1. For fund managers, the exposure of private equity funds may damage their reputation, dampen investor confidence, and may be held accountable by the regulatory authorities.
2. For investors, the risk exposure of private equity funds will directly lead to the loss of their investment principal, and even face the risk of total loss in extreme cases.
3. For the whole market, the exposure of private equity funds may lead to negative effects such as tight market liquidity, stock price crash, and even lead to systemic risks.
Is it appropriate for funds to invest in stock funds?
It is appropriate for funds to invest in stock funds. Generally, it is more suitable for funds with large fluctuations. When the fund fluctuates greatly, it may generate floating income. The greater the fluctuation, the greater the profit and loss.
Generally, the fixed investment of the fund belongs to the admission in batches, which can achieve the effect of sharing the cost equally, so it is easier to produce the smile curve effect. When the market falls, we can accumulate low-cost chips through the fixed investment of the fund, and when the market rises, we have a chance to get better returns. The fixed investment of the fund generally values the long-term investment income of the fund.
Although the essence of the fund's fixed investment is to share risks equally, all funds are risky, and so is the fund's fixed investment. Therefore, when making a fixed investment, you need to choose a good stock fund. If you choose a bad stock fund, if the market of the fund is not good, it will always fall more and rise less, then the fixed investment of the fund will also aggravate the loss of the fund, and the fixed investment of the fund will only be effective if the right fund is selected.
Why is the fund limited?
The fund may be restricted under the following circumstances:
1, protecting investors' rights and interests
When the fund market is good or when dividends are paid, many investors will rush to buy funds. If subscription is not restricted, the scale of funds will expand rapidly in a short time, and if it is not handled properly, the income of other investors will be diluted.
2. Control the fund size.
As the saying goes, "a small boat is easy to turn around." When the fund scale is too large, the fund manager's ability to exchange positions and shares is high, and the fund manager needs to go through research and can't buy and sell at will. If you buy in large quantities, you can only add positions, and the shareholding ratio will increase after adding positions, so we should consider the influence of the "Public Offering of Fund Double Ten" restriction.
3. Foreign exchange control
For example, QDII funds are mostly restricted by foreign exchange control.
4. Performance Appraisal Node
The fund ranks its performance every year. In the performance appraisal node, for reasons such as performance ranking assessment, fund managers may impose subscription restrictions to ensure their income, avoid diluting the holders' income, and effectively prevent excessive fluctuations in net worth.
Classification of allocated funds
Actively allocate funds
Allocation fund
Funds that invest in stocks, bonds, money market instruments, commodities, and alternative investments (such as unlisted equity and non-standardized creditor's rights). ) and does not meet the classification criteria for investing in stock funds, bond funds, equity investment funds or other single financial products; And the ratio of fixed income assets to net asset value.
Conservative allocation fund
Funds that invest in stocks, bonds, money market instruments, commodities, and alternative investments (such as unlisted equity and non-standardized creditor's rights). ) and does not meet the classification criteria for investing in stock funds, bond funds, equity investment funds or other single financial products; And the proportion of fixed income assets to net asset value is ≥50%.