For domestic private equity funds, the main problem at present is the lack of legal basis and policy support, which makes them on the edge of law and policy. Because the legal status of private equity funds is not recognized, their business activities have been outside the supervision of laws and policies. In the event of default, neither fund managers nor investors are protected by law, so they face great legal and policy risks, and the larger the fund scale, the higher the legal and policy risks.

2. Moral hazard

The organizational structure of private equity funds is a typical "principal-agent mechanism". Limited partners hand over funds to general partners for operation, and only make general provisions on the use of funds, and usually do not interfere with the specific operation of fund managers. In addition to fixed management fees, the income of private fund managers also includes performance commission fees. If the fund manager abuses his power to pursue more personal interests, it will make the assets of fund holders bear greater risks. Therefore, even if private equity funds have superior incentive arrangements, the moral hazard of agents still exists.

3. Operational risk

The investment strategy of private equity funds is hidden, and there are generally no strict restrictions on the information disclosure of private equity funds in the world, which will cause serious information asymmetry and is not conducive to the protection of fund holders' interests. In the absence of external restraint mechanism, the speculative pursuit of interests by private equity funds may make them collude with listed companies, conduct insider trading, manipulate stock prices and other illegal acts to obtain huge profits. These operational risks will bring great harm to investors and the market.

4. Liquidity risk

Private equity funds generally have a long lock-up period, during which funds are not allowed to withdraw, so as to ensure the continuity and stability of fund operation and not affect the investment strategy of fund managers. Private equity funds cannot be listed and traded, and the risk cannot be transferred at any time. The holders can only realize it after the holding period expires. Because it is difficult to realize the funds during the closed period of the fund, the fund holders may have a debt crisis or even bankruptcy.

Public offering fund risk

Compared with private equity funds, the risk in Public Offering of Fund is low, but the risk still exists, and different types of Public Offering of Fund face different risks. Let's judge the risks according to the different types of Public Offering of Fund.

The risk levels of public offering funds are as follows:

① Low risk (1 level): money market funds;

② Moderate low risk (level 2): bond fund+bond QDII fund;

③ Medium risk (level 3): equity fund+hybrid fund+equity QDII fund+hybrid QDII fund;

(4) Medium and high risk (level 4): alternative investment funds with relatively good liquidity such as commodity funds and commodity QDII funds;

⑤ High risk (level 5): alternative investment funds with relatively poor liquidity, such as fixed income funds 2 and unlisted equity investment funds 3.

Different types of Public Offering of Fund face different risks:

1, equity fund

Equity fund refers to an investment fund with stocks as the main investment object, and its stock assets account for at least 80% of the fund assets. Compared with investors who directly invest in the stock market, stock funds have the characteristics of portfolio investment, risk diversification and pursuit of long-term capital appreciation, and are more suitable for long-term investors who have no experience in stock investment but are willing to share stock returns and active investors who pursue high returns.

2. Hybrid funds

Hybrid funds refer to funds that invest in stocks, bonds and money market instruments. In addition, according to the different investment ratios and investment strategies of stocks and bonds, hybrid funds are divided into various types, such as partial stock funds, partial debt funds and allocation funds. Because the hybrid fund is a combination of stock funds, monetary funds and bond funds, it also determines that its risk-return is between the three, that is, the risk-return is lower than that of stock funds and higher than that of bond funds and monetary funds, and it is a wealth management product with moderate risk-return

3. Bond funds

Bond funds refer to funds whose bond assets account for more than 80% of the fund assets. Therefore, the volatility of bond funds is usually less than that of equity funds and hybrid funds. It can be said that bond fund is an investment and financial management tool with moderate risk-return level, which is suitable for investors with moderate risk preference, pursuing stable asset appreciation, optimizing investment portfolio and reducing overall risk.

4. Money market funds

Money market funds, represented by Yu 'ebao, invest in cash and bank deposits with good liquidity. The yield of money funds is generally higher than that of bank one-year time deposits, which is suitable for investors who are risk-averse and have high requirements on asset security and liquidity to make short-term investments. Money market funds can replace demand deposits to some extent because of their convenient redemption, short arrival time and low transaction cost.

Public Offering of Fund is characterized by the separation of four powers, transparent information and risk sharing, thus creating a relatively stable income state in Public Offering of Fund. * * * Although the raised funds have always had problems such as high liquidity risk, limited investment varieties and lack of creativity in fund products, the risks are basically stable.