Public Offering of Fund does not charge performance commission, but mainly charges management fees, that is to say, the profit model of managers in Public Offering of Fund is to charge management fees. This reduces the risk of investors to some extent. After all, high returns are often accompanied by high risks.

On the contrary, private placement is all about absolute income, and the scale of a single fund is very small, so it is impossible to meet the basic operation and development of the company with a little fixed management fee. Therefore, private placement must help investors get absolute returns and then share these benefits with investors.