Public Offering of Fund, a public offering, refers to a securities investment fund that raises funds from public investors in an open way and takes securities as the main investment object. Private placement, that is, private investment funds, refers to investment funds raised from qualified investors by means of non-public offering. Do you know the difference between public offering and private offering?

1. Ways of raising funds

Public Offering of Fund can raise funds from public investors through public offering of funds, bank consignment, etc. Private equity funds are private and can only be issued to specific institutions or individuals to raise corresponding funds, and cannot be publicly issued.

The threshold for buying Public Offering of Fund in Public Offering of Fund is not high. Generally, 1 yuan starts, and even some funds in 1 yuan can start, and they can be redeemed at any time during the trading day, which is suitable for ordinary investors. And there is no limit to the number of people participating. The investment threshold for purchasing private equity funds is high, usually starting at 1 million, which is suitable for investors with large funds. In general, it is limited to 2 people, including institutions and individuals.

2. Product scale

The scale of products in Public Offering of Fund is usually large, ranging from several hundred million to tens of billions of yuan.

the assets of a private fund are relatively small, only tens of millions to billions of yuan.

3. Investment restrictions

There are many restrictions on stock investment, and there are clear restrictions on the minimum position of holding shares.

Private equity funds have fewer investment restrictions, and their positions are extremely flexible. Man Cang can take short positions or participate in other financial products.

4. Expenses

Due to the large-scale characteristics of Public Offering of Fund, its main income comes from the fixed management fees paid by investors every year, which can fully maintain the normal operation of Public Offering of Fund.

The annual income source of private equity funds is mainly floating management fees. The charging rule of this fee is that private equity * * takes 2% of the profits from each new high in the fund's net value as commission, which means that private equity * * can only make profits on the premise of continuously making money for investors.

5. Liquidity

Public Offering of Fund is very liquid and can be redeemed at any time.

the liquidity of private equity funds is relatively poor, and they can be redeemed on the public open day every month or quarter, and some private equity funds are not allowed to be redeemed for 6 months to 1 year after purchase.

6. Information disclosure

Public Offering of Fund's information disclosure is strictly supervised by the CSRC, and the requirements are very strict. Every quarter, it is necessary to disclose its investment portfolio, position ratio and other information in detail.

The information disclosure requirements of private equity funds are relatively low, so they are not too strict and have very good confidentiality.

7. Scope of investment

Public Offering of Fund has a small scope of investment, so it can only choose stocks or bonds for investment.

Private equity funds have a wide range of investments, not only in stocks and bonds, but also in unlisted equity, real estate and risky enterprises.