Legal analysis: Fund raising methods are divided into Public Offering of Fund and private equity funds. Public Offering of Fund refers to the second-class funds that can be sold to the public; Private equity funds refer to funds that can only be raised and sold to specific investors in a non-public way.

Legal basis: Article 3 of the Securities Investment Fund Law of People's Republic of China (PRC), the rights and obligations of fund managers, fund custodians and fund share holders are stipulated in the fund contract in accordance with this Law.

Fund managers and fund custodians shall perform their fiduciary duties in accordance with this Law and the provisions of fund contracts.

Fund share holders of funds established through public offering (hereinafter referred to as Public Offering of Fund) shall enjoy benefits and bear risks according to their fund shares, and the income distribution and risk bearing of funds established through non-public offering (hereinafter referred to as non-public offering funds) shall be stipulated in the fund contract.