Private equity funds generally refer to funds engaged in private equity (non-listed company equity) investment. Private placement is relative to public offering. At present, all funds in China are raised through public offering, which is called fund public offering. If a fund does not go through public offering, but privately raises funds from a specific target, it is called a private equity fund.

Funds that use hedging transactions are called hedge funds, also known as hedge funds or hedge funds. It refers to a financial fund that aims at profit after financial derivatives such as financial futures and financial options are combined with financial instruments. It is a form of investment fund, which means "risk hedge fund".

Private equity investment mainly invests in the equity of unlisted enterprises, which will accompany the growth stage and development process of enterprises and cultivate the resources of publicly listed enterprises. Generally speaking, PE is a private equity investment fund, which can promote the real economy in China.

Hedge funds are often called "long/short stock hedging", pointing out that hedge funds emphasize short selling and short selling investment strategies, and each hedge fund will adopt a unique strategy suitable for its own situation. Its investment targets include stocks, bonds and commodities, especially high-yield derivative financial products and problem bonds.