To spot private equity fund scams, you must first understand the risks of private equity funds.

First, it is divided into two categories: commercial risk and non-compliance risk. Commercial risk refers to the situation where the company suffers losses in operations or fails to pay when due due to other reasons after private equity funds enter the company. This risk is controllable and reasonably exists.

, comes with profits. When business risks turn into losses, they are borne by the investors themselves.

If you want to avoid business risks, you must choose products from fund companies with good reputations, learn more about fund investment and risk control measures, and choose carefully. This kind of risk is not a scam, but a normal market risk.

Violation risks are further divided into ex-ante violation risks and ex-post violation risks. Ex-post violation risks are mainly manifested in misappropriation or transfer of funds after the enterprise obtains funds. This mainly tests the regulatory and operational capabilities of the fund company. In order to avoid the best way

It is better to choose a fund company with a better reputation.

The risk of violations beforehand can be said to be illegal scams involving fund companies, which are mainly reflected in excessive fundraising or changes in investment direction.

This kind of scam mainly relies on high returns and customer service as bait. To identify it, you need to remember that the wool comes from the sheep. At present, the financial cost that the real economy can bear does not exceed 12% annualized, excluding the operating costs and customer service of the fund company.

Cost and higher sales commissions and project commissions will not leave too much profit space for investors. Don't lose your capital by coveting interest.

So in the final analysis, resisting the temptation of high profits and choosing a reputable fund company are the most important factors in avoiding private equity fund scams.