1. What is a public offering fund? Public Offering of Fund and publicly offered funds are securities investment funds that are supervised by the competent government departments and issue beneficiary certificates to unspecified investors. Under the strict supervision of the law, these funds have industry norms such as information disclosure, profit distribution and operation restrictions. For example, at present, the closed-end funds in the domestic securities market belong to Public Offering of Fund. Public Offering of Fund and private equity funds have their own merits, and their healthy development is of vital significance to the development of financial markets. Second, the current situation of Public Offering of Fund, China's fund industry developed in 14, and the fund market share showed a step-by-step growth trend: the first stage was 1998 to 2000, and the fund scale was very small because the market variety was limited to closed-end funds, and the fund shares in three years were/kloc-0, 50 billion and 6 10 respectively. The third stage was in 2002-2003, and the fund scale grew rapidly, and the expansion scale reached its peak in 2003. Its market size of 654.38+063.3 billion has more than doubled compared with 2002. From 2004 to 20051October 20th, the scale of fund issuance fluctuated and developed due to market adjustment and other factors. There are 54 closed-end funds and 159 open-end funds in China fund market, with a fund share of 320 billion. From 2005 to 2007, the net value of the fund soared to 3.2 trillion. Since 2007, due to the stock market downturn, the net value of the fund has dropped to about 2 trillion. According to the quarterly report of April 23rd, 20 13, at least six Public Offering of Fund companies held stock index futures contracts at the end of March 20th13. Among them, Cathay Pacific Capital Protection Mixed Fund holds 207 IF 1304 contracts alone, with a market value exceeding1550,000 yuan, which hedges over 70% of the market value of its ending stocks. This means that domestic funds began to bid farewell to the historical pattern of tinkering around the edges in the field of stock index futures, and gradually merged with the strategy of "multi-holding+dynamic stock index futures hedging" adopted by large overseas asset management companies. Following the diversification and instrumental innovation of wealth management products in recent years, the innovation and grafting hedging strategy of active equity funds may explore a new investment path with absolute returns. Third, Public Offering of Fund enjoys the characteristics of overall market returns. The excess return of the fund cannot be divorced from the performance benchmark for a long time. The larger the scale, the more likely the fund will get the average profit in the market; To sum up: separation of powers, transparency of information and risk sharing. Fourth, the difference between Public Offering of Fund and private equity funds is different. The target of public offering funds is 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. There are different ways to raise funds. 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. 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. Investment restrictions are different. Public Offering of Fund has strict restrictions on the types of investment, the proportion of investment and the matching between investment and fund types, while the investment restrictions of private equity funds are completely stipulated in the agreement. Different performance awards. Public Offering of Fund does not extract performance compensation, but only collects 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. Apart from some basic institutional differences, private equity funds and Public Offering of Fund are quite different in investment concept, mechanism and risk taking. First of all, the investment objectives are different. Public Offering of Fund's investment goal is to surpass the performance comparison benchmark and pursue the ranking in the same industry. The goal of private equity fund is to pursue absolute return and excess return. But at the same time, private investors have to take higher risks. Secondly, their performance incentive mechanisms are different. The income from the fund company's public offering is the daily fund management fee, which has nothing to do with the profit and loss of the fund. The income of private placement is mainly income sharing. Only when the net value of private placement products is positive can management fees be withdrawn. If the fund they manage is losing money, then they will have no income. Generally, the performance reward extracted by private equity funds based on performance profit is 20%. In addition, Public Offering of Fund has strict procedures and strict policy restrictions on investment, including restrictions on shareholding ratio and investment ratio. When investing in Public Offering of Fund, the operation of public offering is strictly regulated because it involves the interests of investors. In addition to not manipulating the market in violation of the provisions of the Securities Law, the investment behavior of private equity funds is flexible in terms of investment methods, shareholding ratio and positions. 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 in scale, and there are few domestic private equity funds with 654.38 billion yuan. They pursue the absolute return on investment, not the scale to earn management fees. Securities Law Article 2 This Law shall apply to the issuance and trading of stocks, corporate bonds, depositary receipts and other securities legally recognized by the State Council within the territory of People's Republic of China (PRC); Matters not covered by this Law shall be governed by the Company Law of People's Republic of China (PRC) and other laws and administrative regulations. This Law shall apply to the listing and trading of government bonds and securities investment fund shares; Where other laws and administrative regulations provide otherwise, such provisions shall prevail.