Public Offering of Fund and private equity funds are easy to distinguish. If you want to know how to tell them apart, take a look at Bian Xiao! The following is how the funds raised by Bian Xiao are divided into public offering and private offering. Welcome to read and share. I hope you like it.

How is the fund divided into public offering and private offering?

Different thresholds

Public Offering of Fund generally starts from 1 1,000 yuan, and the lowest can start from 1 1,000 yuan; Private placement is aimed at high-net-worth customers, with a threshold of 6.5438+0 million yuan. Some private placements will further raise the threshold in order to control the scale.

be different in nature

Private equity fund refers to a securities investment fund that raises funds from specific investors in a non-public way and invests in specific objects. Private equity funds are raised by means other than mass communication, and promoters set up investment funds to invest in securities by collecting funds from non-public multi-subjects.

What is a private equity fund?

Private placement fund is an investment product raised by fund managers or fund custodians and issued to a specific group of investors. Compared with Public Offering of Fund, private equity funds have higher investment threshold, wider investment scope, more flexible investment strategy and higher return potential.

Private equity funds usually invest in institutional investors and high-net-worth individuals, and the investment threshold is high, which usually requires investors to meet certain financial conditions and investment experience requirements. Private equity funds are usually raised for a few specific investors, and the amount raised is usually small, but they can be raised many times according to the needs of investors and market conditions.

What is a public offering fund?

Public Offering of Fund is an investment product issued by a professional fund management company or fund custodian, which collects funds from the public, concentrates on investing in different financial markets, obtains income and distributes it to investors. Compared with other financial products, Public Offering of Fund has many advantages, such as low investment threshold, strong liquidity, scattered risks and professional management, and has become the choice of many investors.

A publicly issued fund is sold to investors in the form of fund shares. When investors buy fund shares, they become fund holders and enjoy the investment income and investment risks generated by the fund. Managers in Public Offering of Fund are responsible for making investment decisions and operating the fund's portfolio, so as to maximize returns and control investment risks.

What are the characteristics of Public Offering of Fund?

Low investment threshold: Compared with other financial products, Public Offering of Fund usually has a lower minimum investment amount and a lower investment threshold, which is more in line with the needs of the public.

Strong liquidity: investors can purchase and redeem fund shares at any time, which is convenient and fast and suitable for investors who need liquidity.

Risk diversification: Public Offering of Fund adopts the strategy of diversification, and invests funds in multiple financial markets and various investment products, effectively reducing investment risks and improving the stability of investment income.

Professional management: Public Offering of Fund is managed by professional fund managers, who have high investment experience and professional skills and can achieve better return on investment for investors.

Advantages and disadvantages of public offering and private offering

1, public offering

Advantages:

(1) With a large number of issuers and great financing potential, it is suitable for issuers with a large number of securities and a large amount of financing.

(2) the issue scope is large, which can avoid hoarding securities or being manipulated by a few people.

(3) Only publicly issued securities can apply for listing on the exchange, which can enhance the liquidity of securities and improve the social reputation of issuers.

Disadvantages:

The publishing process of (1) is complicated.

(2) The registration approval time is long.

(3) The issue cost is high.

2. Direct sales when issuing bonds

Advantages:

(1) A stable source of funds.

(2) High value-added services.

(3) It can reduce the financial cost.

(4) Improve the intrinsic value of the enterprise.

Disadvantages:

(1) After an enterprise transfers its shares, the original shareholders' shares are diluted, even losing their controlling position or completely losing their shares, the relationship between shareholders changes, and their rights and obligations are readjusted.

(2) With the change of ownership structure, the management right of the enterprise will change accordingly, and the management right will be owned by the controlling shareholder after the equity transfer.

(3) In the case of the change of enterprise management rights, new managers are likely to have different development strategies, and it is not impossible to completely change the original intention and ideas of entrepreneurs.

(4) Investors often hope to get a return on investment as soon as possible, and may not pay attention to the long-term development of enterprises like entrepreneurs, so they may change their development strategies in order to realize short-term benefits.