In the investment process of private equity funds, a key link is introduced, namely the cooling-off period.

This is clearly stipulated by the Asset Management Association of China in the "Measures for the Administration of Private Investment Fund Raising Behavior".

According to the law, when investors sign a fund contract with a fundraising agency after completing the qualified investor confirmation process, the contract must include a cooling-off period of at least 24 hours.

During this period, fundraising agencies are not allowed to proactively contact investors. The purpose is to give investors enough time to evaluate investment decisions and avoid impulsive and irrational decisions.

The cooling-off period begins after the investor signs the fund contract and makes payment.

It is worth noting that although the cooling-off period is mandatory, investors still have the right to withdraw their investment and get their funds back before the return visit is confirmed after the cooling-off period expires.

At present, investor return visit confirmation is an incentive measure and is not mandatory.

The existence of the investment cooling-off period is mainly to protect investors from potential losses of high-risk private equity funds and ensure that they can make rational investment choices without interference from the outside world.

The China Securities Regulatory Commission’s cooling-off period for private equity funds is a strong protection for investors’ rights and interests.

When investors see high-yield information in advertisements, the cooling-off period allows them time to reflect and, if they decide not to invest, to terminate the contract without pressure.

In general, the cooling-off period is an integral part of the private equity fund investment process, aiming to promote investors' rational decision-making and reduce investment risks.