Current location - Trademark Inquiry Complete Network - Tian Tian Fund - Why do private equity funds need 1 million yuan?
Why do private equity funds need 1 million yuan?

Hello, fund practitioners come to try to answer your question.

the minimum amount for individuals to purchase private equity funds is 1 million yuan. The reasons may be as follows

1. Private equity funds have a high risk level, which ordinary investors can't bear.

in the venture capital rating test, the higher the rating, the stronger the risk tolerance. The requirement of 1 million investment has forcibly eliminated a large number of investment customers with low risk tolerance, leaving high-grade customers.

2. Private placement is different from public offering, and it is not for public sale.

Private placement is only sold to special people, and the number of participants is limited, and it is not publicized publicly.

3. The Measures for the Administration of Raising Behavior of Private Investment Funds stipulates this.