How do we set up our own private equity fund? What can we do after knowing the knowledge of private equity funds? The following is how to set up a private equity fund compiled by Bian Xiao, hoping to help you to some extent.
How to set up private equity fund
Classification of private equity funds. According to different standards, private equity funds have many classification methods. There are only common investment targets here. From the international experience, the investment targets of private equity funds are very extensive at present. In the United States and Britain, for example, the investment objects of private equity funds include stocks, bonds, futures, options, warrants, foreign exchange, gold and silver, real estate, information software industry and venture capital of small and medium-sized enterprises. The investment scope ranges from money market to capital market to high-tech market, from spot market to futures market, and from domestic market to international market.
Securities investment private equity fund
As the name implies, this fund mainly invests in securities and other financial derivatives, and hedge funds such as Quantum Fund, Tiger Fund and Jaguar Fund are typical representatives. Basically, managers design their own investment strategies and initiate the establishment of open-end private equity funds, which can adjust the investment portfolio and change the investment concept in time according to the requirements of investors and the development trend of the market, and investors can redeem them according to the net value of the funds. Its advantages are that it can be tailored according to the requirements of investors, the funds are relatively concentrated, the investment management process is simple, a large number of financial levers and various forms of investment can be used, and the yield is relatively high.
Industrial private equity fund
This kind of fund mainly focuses on the investment industry. Because fund managers have a deep understanding of certain industries such as information industry and new materials, and have extensive contacts, they can initiate the establishment of industrial private equity funds in the form of limited partnership. Managers spend very little money only symbolically, and most of them are paid a raise. Managers should bear unlimited responsibilities while obtaining large investment income. This kind of fund is usually closed for 7-9 years, and will be settled in one lump sum at maturity.
Advantages and disadvantages of funds and stocks
Stocks and funds have their own advantages and disadvantages.
If you have rich financial knowledge and courage to judge, are willing to bear the risks brought by stock market fluctuations and hope to earn higher returns, then buying stocks is better; If you lack these conditions and want to hide risks through diversified channels, then it is better to choose fund investment.
Matters needing attention in fund investment
Matters needing attention in fund investment: fund risk
Because there are many open-end stock funds, which are also the most risky funds, while bond funds or money market funds are relatively less risky, and any investment is risky. Investors must judge what kind of investment they have and what kind of risk tolerance they have.
Note 2 of fund investment: don't be greedy and cheap.
It is not correct for investment funds to choose funds with lower prices, because buying a fund must look at the rate of return of the fund, not the price change, because the rate of return of the fund is the best indicator of investors' future investment income.
Matters needing attention in fund investment: choose the old fund first.
All funds with new hairstyles have their own characteristics, but from a realistic point of view, the old funds have more advantages than the new ones. For example, the old fund has historical performance, which can measure the level of fund managers, and the new fund should complete the task of opening positions within half a year. If they want to invest a lot of money in the limited stock market, they will inevitably buy the stocks that the old fund has already opened, and the new fund needs to pay stamp duty and handling fees, so the old fund should be the first choice to buy funds.