The biggest difference between private placement and public offering is the incentive mechanism, profit model, supervision and scale. The specific investment methods, especially the stock selection criteria, are not different under the same style. As far as Public Offering of Fund is concerned, its investment style was determined at the beginning of its establishment. For example, some specialize in small-cap stocks, some focus on large-cap blue chips, some follow growth investment strategies, and some tap value-based opportunities with rich varieties, which can provide corresponding products for investors with different risk tolerance. For private equity funds, most of them are small. At present, there are few private equity funds of 654.38 billion yuan in China. They pursue absolute return on investment, not scale to earn management fees. Due to the limited scale of private management funds, it is unlikely to follow the index (holding a large number of blue chips) like public offerings, and the investment style is more flexible. That is to say, after doing a good job in risk management, it mainly focuses on mining individual stocks (big bull stocks) and is more sensitive to some hot spots in the market. Those successful managers in Public Offering of Fund in the past have a strong ability to tap bull stocks, and they can give full play to their specialties after private placement. They don't have to be forced to hold a large number of index heavyweights with average performance as before, they can let go of their hands and feet to choose stocks, and they can even make varieties that Public Offering of Fund regarded as high-risk before, such as ST and poor-performing stocks, but only if their salted fish may turn over in the future after research, not just the traditional "farmers" or "traders". If we manage a 9-digit private equity fund, we will naturally focus on pure stock selection and pursue absolute returns, and the efficiency of fund use will be much higher than that of public offering. After all, with fewer plates, we can choose to invest in more stocks. As long as its growth can be determined and its price is reasonable, it can enter even if the current market value is only 500 million, which is impossible for most Public Offering of Fund, but small-cap stocks are often more likely to have 10 times the stock. The life of private placement will be more moist, and the return will be attractive from the perspective of individuals and teams. But if you are ambitious and want to do it on a large scale, you will eventually turn to public offering and earn a fixed management fee, because the bigger the scale, the more difficult it is to surpass the market performance.