The advantages of private equity investment funds are:

First, the first is flexibility.

Public Offering of Fund has a 10% investment ratio limit for the same stock, and private equity investment funds are not restricted. Once private equity funds find an undervalued stock, they can buy it as much as possible, which urges private equity funds to spend more energy on enterprise research, and sometimes even go to listed companies to buy performance and send news at high prices; Private equity funds can also engage in derivatives and some cross-market arbitrage prohibited by Public Offering of Fund.

Secondly, a good incentive mechanism.

Because the profit source of private equity investment funds is mainly the distribution of performance income, rather than management fees, the more profits they create for their clients, the more their income, which also urges fund managers to try their best to improve the fund's rate of return.

Third, private equity investment funds are also more dominant in investment decisions.

For example, when a research department in Public Offering of Fund discovers a stock with investment value, it often needs to submit a report, hold a meeting to discuss it, and the risk control department will review it, and then the investment director will make a decision, which takes a long time. When making decisions, investment opportunities are often missed. Private equity funds do not have to worry about this. When they find a good variety, they can react faster.

Fourth, private placement is an absolute income. Public Offering of Fund should consider the ranking of each quarter, half a year and the end of the year, which will also put great pressure on fund managers and affect long-term stable investment.

Fifth, the scale of private equity investment funds is smaller than that of public offering10 billion Big Mac, which is more conducive to the entry and exit of funds and the cost of opening positions is much lower.