Funds are not only divided into money funds, stock funds and bond funds, but also can be divided into Public Offering of Fund and private equity funds according to the way of raising funds. We usually buy publicly issued funds.

What are you most afraid of when investing in financial management? In fact, financial losses are not the most terrible, especially when investing in some risky products. It is normal to have losses.

What is more terrible than the loss is stepping on a minefield, and the products bought are thunderous, such as buying fake wealth management, or the other party running away with money and so on. , may make the principal lose everything.

Recently, there have been problems with private equity funds. According to the information disclosed by the Nanshan District Court, a fund management partnership in Shenzhen is suspected of illegally absorbing public deposits of 7170,000 yuan, affecting 264 investors, with an unpaid amount of 575 million yuan.

I don't want to go into more details, perhaps because the company issues products to an unspecified public in some way, and also promises to protect the capital and interest.

In the process of fund private placement and management, the company failed to fulfill its relevant obligations and was publicly condemned by the Securities Regulatory Bureau. It can be said that there have been some risk warnings.

Although there are not many lightning incidents in private equity funds, they are more than those in Public Offering of Fund, which makes some friends have some doubts about private equity funds.

In fact, there are many private equity funds on the market now. As long as they are issued by regular fund companies, most of them will conduct business according to compliance requirements.

However, you should invest carefully. There is a saying that it is difficult for you to earn more money than you know, and you don't know enough about private equity funds. It is best not to get involved easily.

Having said that, what's the difference between private equity funds and Public Offering of Fund? Who will be better for ordinary investors?

Although both Public Offering of Fund and private equity funds have the word fund, there are still great differences between them. In the absence of a clear understanding, it is better not to invest indiscriminately.

First of all, from the threshold. The threshold for investing in private equity funds is high, and private equity has certain requirements for customer qualifications, which generally corresponds to high-net-worth people.

In Public Offering of Fund, there is basically no investment threshold. As long as the risk tolerance is matched, there will be no obstacles to purchase and you can invest without any funds.

Secondly, from the way of raising funds. Public offering fund refers to a fund that publicly issues beneficiary certificates to unspecified social investors.

Private placement fund is a securities investment fund that collects funds from specific investors in a non-public way and invests in specific objects.

There are essential differences between Public Offering of Fund and private equity funds in raising funds, and it is precisely because of these differences that private equity has higher requirements for customers.

Third, information disclosure is different. Public offering foundations have high information transparency and need to disclose information in strict accordance with regulations. Private placement is not transparent and it is not convenient for investors to know the situation.

Finally, there are some differences between investment objects and performance rewards. Public Offering of Fund's investment targets are generally money markets, stocks, bonds and stock indexes. Many private equity funds are investment equity, creditor's rights and business projects.

In terms of performance rewards, Public Offering of Fund generally only charges fund management fees, while private placement charges fund performance rewards, which is quite different from public offering and private placement.

As to who is more worth investing in, Public Offering of Fund or private equity funds, it still depends on the individual thoughts of investors. Some investors like the transparency and flexibility of public offering, while others expect high returns from private offering, depending on what individuals think.

However, for us ordinary people, investing in Public Offering of Fund may be better than investing in private equity, because we are relatively less worried and we usually know it better.