Firstly, it is divided into two categories: commercial risk and violation risk.
Commercial risk refers to the loss caused by the company's operation or the inability to pay due to other reasons after the private equity fund enters the company. This kind of risk is controllable and reasonable, and it comes with benefits. When business risks turn into losses, they will be borne by investors themselves. If we want to avoid commercial risks, we should choose the products of reputable fund companies, learn more about fund investment and risk control measures, and choose carefully. This kind of risk is not a scam, but a normal market risk.
The risk of violation is divided into pre-violation risk and post-violation risk, among which the post-violation risk is mainly manifested in the misappropriation or transfer of funds after the enterprise obtains funds. At this time, it mainly tests the supervision and operation ability of fund companies, and the best way to avoid it is to choose a fund company with good reputation.
The risk of violating the rules in advance can be said to be fraud involving fund companies, mainly reflected in over-raising or changing investment. This scam mainly relies on high returns and customer service as bait. If you want to identify it, you need to remember that wool comes from sheep. At present, the financial cost that the real economy can bear is mostly below 12% on an annualized basis. After deducting the fund company's operating costs, customer service costs and higher sales commissions and project commissions, the profit margin left to investors will not be too large, and you must not covet interest and lose your blood. So in the final analysis, resisting the temptation of high profits and choosing a reputable fund company are the most important factors to avoid the fraud of private equity funds.