When most people buy funds, they never care whether the fund is public or private, as long as it makes money.

But these people don't know that if you buy private equity funds, you need to pay attention!

Funds can be divided into public funds and private funds.

Public funds refer to securities investment funds that raise funds from public investors in a public manner and invest in securities.

Public funds raise funds from public investors in a public manner and can be publicly issued to the public through direct sales by fund companies, third-party sales, etc., while private funds cannot be publicly issued and can only raise funds from specific qualified investors.

As inclusive financial products, public funds usually require a relatively low purchase capital threshold, while private equity funds require investors to have high risk identification capabilities and risk-taking capabilities, and the corresponding purchase capital threshold is relatively high, starting with hundreds of thousands of yuan.

Public funds are relatively more transparent. They regularly publish information related to product investment operations through regular reports such as quarterly reports, semi-annual reports, and annual reports, while private funds only disclose product information to specific qualified investors, and the disclosure content is not released publicly.

Public funds are more stringent in terms of risk control and compliance and are subject to relatively more restrictions during the investment process, while private funds are more flexible.

For example, the investment direction of public fund portfolios and the available investment tools are relatively single, and are agreed in advance by the contract, making it difficult to change them directly during the investment process.

Private equity portfolios usually have fewer agreements and are more flexible in the use of investment tools.

The charging mechanisms of public funds and private funds are different. The income of public funds mainly comes from fixed management fees, while the income of private funds mainly comes from floating management fees (performance commission).

From the above comparison, we can know that public funds are suitable for our investment, but private equity funds are not necessarily suitable for our investment.

There are not only public funds but also private funds in the market. We must keep our eyes open when purchasing fund products.