In recent years, capital allocation has been continuously optimized, and China's private equity funds have continued to grow and develop. Although private equity fund appeared late in China, it has developed rapidly and has become an important force that cannot be ignored in the securities market. Bian Xiao will share it with you today for your reference only!

Pay attention to these points when choosing private equity funds.

1. Never expect too much from private equity funds.

There are many star private placements in each period, but there are not many private equity funds that can continue to perform well in a complete bear-cow cycle.

For investors, on the one hand, we can't have unrealistic illusions about the return rate of private equity funds. On the other hand, in the choice of funds, we can consider moderate dispersion, and it takes some time to get a basic understanding of fund companies and fund managers to avoid investment risks.

2. Pay attention to personal risk tolerance

Each investment management company has different investment ideas and strategies for different private placement products.

How do they define investment and speculation? What kind of investment ideas and market strategies should we choose respectively? These are the most difficult to grasp when choosing private placement products. Investors are advised to read more professional books and websites, or consult experts, and at the same time recognize their risk preferences and make the best choice.

3. The performance of private equity with excessive concentration of equity may be ups and downs.

For investors, there are two problems that need to be paid attention to in private equity funds with too concentrated equity.

First, if the fund manager has achieved excellent results with several long-term bull stocks, but the newly invested funds obviously cannot cross the past and buy these bull stocks at the low price of the year, then such bull stocks may not be found in the future.

Second, the market fluctuates, even the stock prices of good companies with cheap valuations may plummet, and funds that have smashed several stocks may suffer heavy losses.

What's the difference between private equity funds and Public Offering of Fund?

(1) The ways of publicity are different.

The publicity target of public offering funds can be the general public, that is, investors who are not specific to society. The target of private equity fund is a few specific investors, including institutions and individuals.

(2) Put forward different goals.

Public offering fund refers to the fund that the issuer sells to unspecified public investors, and any legal investor can subscribe for public offering fund shares.

Choosing private equity investment needs to meet the standards of qualified investors stipulated by laws and regulations: (1) Have more than 2 years of investment experience, and meet one of the following conditions: family financial net assets are not less than 3 million yuan, family financial assets are not less than 5 million yuan, or my average annual income in recent 3 years is not less than 500,000 yuan. (2) A legal entity with a net asset of not less than 1 00000 yuan at the end of the recent period. (three) other circumstances that the financial management department considers qualified investors.

(3) Different financing methods.

Public Offering of Fund raises funds through public offering, while private equity funds raise funds through non-public offering, which is the main difference between private equity funds and Public Offering of Fund.

(4) Information disclosure requirements are different.

Public Offering of Fund has very strict requirements on information disclosure, such as its investment objectives and portfolio. Private equity funds have low requirements for information disclosure and strong confidentiality.

(5) Different performance rewards.

Most Public Offering of Fund don't extract performance compensation, but only charge management fees. Private equity funds, on the other hand, charge performance compensation and generally do not charge management fees. For Public Offering of Fund, performance is only the honor when ranking, while for private equity funds, performance is the basis of remuneration.

The meaning of private equity fund

Private equity fund refers to the investment in equity assets that cannot be traded freely in the stock market. The investment contents of this investment mainly include non-listed company's equity or listed company's non-publicly traded equity, and the forms mainly include leveraged buyout, venture capital, growth capital, angel investment and mezzanine financing. Private equity funds do not pursue equity gains, but sell equity through equity transfer paths such as listing, management buyouts and mergers and acquisitions.

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