Are private equity funds reliable?
To know whether private equity funds are reliable, we need to have a general understanding of them first.
1 non-public: unlike fund public offering, private equity funds openly seek investors, but sell them to specific qualified investors through private negotiation. Therefore, for many investors, we know little about private equity funds, which increases our investment risk.
2 Flexible operation: Compared with Public Offering of Fund, private fund investment is more flexible, private fund managers have greater freedom of operation, and unlike Public Offering of Fund, which has strict supervision on registration, declaration and information disclosure. The investment strategy is highly confidential. Therefore, if the fund manager is more capable, we can get more stable or higher returns.
But it also aggravates the security risk of our funds. Therefore, if you want to find a reliable private equity fund, you need to choose a formal fund product launched by a formal fund company. You should also have an understanding of the risk control system of fund companies.
3 high threshold: because the risk will be greater, the threshold of private equity funds will be higher. According to the relevant laws and regulations, the amount invested by individual investors in a private equity fund is not less than 6.5438+0 million, and then the financial assets of individual investors are not less than 3 million, or the average annual income in the last three years is not less than 500,000. Investors should have corresponding risk tolerance.
Generally speaking, the threshold for investing in private equity funds is higher, and the management of private equity funds will be more flexible. We should also have stronger anti-risk ability while obtaining higher returns, which requires more investors. As for whether it is reliable or not, it mainly depends on the specific fund products and our fund selection ability.