What does private equity fund mean? Is it safe? Buying a private equity fund is different from buying Public Offering of Fund. Private equity funds cannot be publicized and can only be sold to qualified investors. Equity investment is accompanied by high risks, and investment is risky, so the choice needs to be cautious. So what does private equity fund mean? Is it safe?

What does private equity fund mean? Is it safe? 1 Are private equity funds safe?

Private equity funds can generally be divided into sunshine private equity and general private equity.

Sunshine private placement is a trust company, and the license threshold of the trust company is relatively high, so the product funds issued are highly secure. But if products are linked to stocks, then we should be careful of the risks of the securities market itself.

Generally, the security of private placement is not as high as that of sunshine private placement, and it generally needs long-term observation and understanding before buying.

Generally speaking, it is safe to buy private equity funds. The security here refers to the private equity fund you bought, and you rarely run away with the money. However, private equity funds are also risky, and the risk is a bit high, because private equity funds are high-risk and high-yield equity investments, which are allowed by law.

What are the risks of private equity funds?

1, the risk of opaque information, private equity funds do not have strict information disclosure requirements.

2. The risk of illegally absorbing public deposits. Some private equity funds may deliberately exaggerate their income and conceal their projects to attract people to participate in the investment, thus exposing the funds to the risk of illegally absorbing public deposits.

3. The risk of mismatch in anti-risk ability. If you invest in private equity funds, you expect to get high returns from private equity funds, but you may not have the corresponding ability to resist risks, because when private equity funds neglect proper management, it is easy to lead to risk mismatch.

What does private equity fund mean? Is it safe? 1. Is it safe to invest in private equity funds according to law?

There is no absolute security guarantee in law;

1, private investment securities. Mainly invest in publicly issued stocks, bonds, futures, options, funds, etc. This kind of capital is relatively safe, because these investment targets are fair value, the investment is visible and the price is transparent and fair. In addition, there is bank fund custody, and private equity companies can't take out the money and spend it themselves, so the funds are very safe. However, specific to the target, the risk of investing in bonds is relatively small, and the risk of investing in futures and options is relatively large.

2. Investment equity private placement and venture capital private placement. Generally, this kind of equity is non-public, such as private placement, equity of some non-listed companies, and investment in the New Third Board market. Because the New Third Board is a market maker system and cannot be considered as a public transaction, it is also classified here.

Compared with the first type of funds, this type of risk is a little bigger, because the first type of investment market is strictly regulated and the funds are a closed loop. The second kind of supervision is relatively weak, and even if there is a bank for fund custody here, if the fund manager has bad motives and invests in an enterprise associated with him for interest transfer, the money can directly enter the invested enterprise, so the protection of bank fund custody is of little significance.

Therefore, this category is much worse in terms of capital security, and the risk is relatively large.

3. Other categories. Besides the above two categories, there are other categories. For example, you can invest in non-performing assets, accounts receivable, entrusted loans, trust loans, rental income rights and so on. Take non-performing assets as an example. If you think about it, you will know that this is a risky thing. If the investment is right, the rate of return is very high. If you make the wrong investment, you may lose money. Therefore, compared with the first two categories, this category is the most risky.

After understanding the above, we can sort out the risks of various private equity funds. The key is to see what kind of classification and what kind of target to invest in. For example, the risk of investing in stocks and bonds is relatively small, the risk of investing in equity and the New Third Board is moderate, and the risk of investing in non-performing assets is great. Similarly, in terms of the security of fund custody, only the security performance of the first category can be guaranteed, and many of the second and third categories cannot be guaranteed.

Second, private equity funds usually stipulate:

1, only qualified investors can buy it (roughly meaning that the family's net financial assets should be above 3 million or my annual income in the last three years should be above 400,000).

2. The number of people raised shall not exceed 200. If you buy too much, don't sell it.

3. Private equity funds generally start at 6,543,800 yuan.

From the above provisions, we can see from the side that the risk of private equity funds is actually much greater than that of public offering. The reason why you want to be a qualified investor and invest 1 10,000 yuan means that you must have money to buy it. On the one hand, rich people have more money and can't afford to lose. On the other hand, rich people basically have financial knowledge and a strong sense of risk. However, the requirement that the number of people raised should not exceed 200 shows that in the case of substantial losses in the fund, this number will not stand the storm, and it is not easy to form mass incidents, and it is easy to control when things happen.

What does private equity fund mean? Is it safe? 1. Is private equity fund safe?

Regular private equity institutions will choose custodian institutions to deposit funds to avoid misappropriation of funds. Custody institutions must obtain custody qualifications issued by the state, ordinary banks, brokers, trusts, etc. Can be used as a trustee of private equity funds. But at the same time, we should understand that private equity investment is a high-risk and high-return investment, and private equity companies will not promise their benefits when investing.

Second, what is the source of funds for private equity funds?

At present, the investors of private equity investment funds in China are mainly private enterprises and wealthy individuals; Under the mature foreign market conditions, the private equity investment industry is mainly funded by institutional investors, including pensions, securities funds, financial institutions and insurance institutions. On the other hand, China residents have few investment channels and low investment returns. The traditional investment methods of residents are still savings, national debt, funds, stocks and real estate. Broadening the sources of funds for private equity investment is conducive to providing more choices for residents to increase their property income.

The sources of funds for the private equity investment industry will gradually establish a diversified fund source system including financial institutions, overseas capital, insurance funds, social security funds, enterprise annuities, enterprise funds, wealthy individuals and social idle funds, so as to enrich the construction of China's multi-level capital market system and better serve the transformation, upgrading and development of the national economy.

Third, how much is the private equity fund?

1. Ways to raise funds

It is not allowed to directly or indirectly promote private placement to unspecified objects by publishing announcements in the media (including corporate websites), posting notices in the community, distributing leaflets to the society, sending short messages to the society, or holding lectures, lectures and other public or disguised forms (including placing prospectus at the counters of commercial banks, securities companies, trust and investment companies and other institutions).

2. Recruitment objectives

2. 1. Threshold requirements

2. 1. 1. Specific objects with risk identification and tolerance;

2. 1.2. The limited partnership shall have no more than 50 partners;

2. 1.3. The National Development and Reform Commission's "Guidelines for the Filing Documents of Equity Investment Enterprises" proposes that the minimum contribution of a single investor to an equity investment enterprise shall not be less than100000 yuan. But this is not the final rule. Investors in private equity funds are limited, with strict restrictions and a relatively high starting point. Pay more attention when choosing. How much should private equity funds buy at least?

Investigate the company's comprehensive strength, the quality of shareholders and manpower, and the company's development goals and concepts; The overall level, stability and professionalism of the investment and research team; Investment performance and performance evaluation, on these points, private equity funds will make more profits because of hidden operation and less strict supervision.

The minimum threshold is 500,000. The general (multi-family) starting value is 6,543.8+0,000 yuan. The starting price is 2 million yuan. The starting price of a few private placements is 3 million yuan or even 5 million yuan.

2.2 Mode of contribution

All investors can only subscribe for their capital contribution with legal self-owned monetary funds, and may not invest in equity investment enterprises by entrusting an investor to hold it on their behalf.

2.3 Proof of assets Natural person investors should provide relevant proof of assets.

3. Other mandatory provisions for fundraisers.

3. 1. Fully reveal investment risks. Fundraisers must fully disclose investment risks and possible investment losses to investors.

3.2. Promise without return. The fund raiser shall not promise investors to recover the investment principal or get a fixed return.