Public Offering of Fund generally refers to securities investment funds that raise funds from public investors in an open way and mainly invest in securities. Now most of the funds on the market are public funds, so what are the characteristics of Public Offering of Fund?

Characteristics of Public Offering of Fund

1. Fund companies can publicly publicize and publicly raise funds, and the investment channels are also legal channels;

2. The purchase starting point is low, with some funds starting at RMB 1 and some funds starting at RMB 1;

3. The liquidity is relatively good. Most Public Offering of Fund funds are open-end funds and can be redeemed at any time:

4. The risk is smaller than that of stocks, because buying funds is a basket of stocks;

5. Compared with private equity funds, the information is more open, and it is necessary to announce the top ten awkward stocks;

6. It is more suitable for retail investors.

what are the advantages of Public Offering of Fund?

1. The investment cost is low: users can buy a Public Offering of Fund at least RMB 1 on the third trading platform, and the purchase of private investment funds requires the certification of qualified investors, and the amount of investment in a single private investment fund is not less than RMB 1 million. Investing in stocks is a start, in fact, it is 1 shares. Therefore, the investment threshold in Public Offering of Fund is relatively low;

2. Diversify risks: Public Offering of Fund has professional fund managers to manage, and their investment ability is better than that of ordinary users. And compared with other single investment products, the fund can invest in a basket of stocks and bonds, and can also buy new shares and make new debts, which disperses the risk of users' investment to some extent;

3. Safety of funds: Compared with private funds, public funds are subject to strict supervision. From the foundation of the fund company to the investment management of funds, there are strict management on personnel qualifications, fund custody and news release, and settlement will be made when the fund is not well managed.

the difference between private equity funds and Public Offering of Fund

1. The target of raising funds is different: the target of raising funds in Public Offering of Fund is the masses, that is, investors not designated by society. Private equity funds raise funds for a small number of designated investors, including institutions and individuals;

2. The way of raising funds is different: Public Offering of Fund raises funds through public listing, while private equity funds raise funds through non-public listing, which is the main difference between private equity funds and Public Offering of Fund;

3. Information disclosure requirements are different: Public Offering of Fund has very strict requirements on information disclosure, and its investment objectives, investment portfolio and other related information need to be published. Private equity funds, on the other hand, have low requirements for information disclosure and strong confidentiality;

4. Investment restrictions are different: Public Offering of Fund has strict regulations on investment types, investment proportion and matching between investment and fund types, while the investment restrictions of private equity funds are completely stipulated in the agreement.

This article mainly writes about the characteristics of Public Offering of Fund, and the content is for reference only.