1. Select the underlying assets. The investment direction of private equity funds is mostly the securities market, including stocks and bonds. Some of them are investment entities, such as PE real estate. The order of assets by risk is: the risk of bonds is less than that of entities and less than that of stocks. Of course, the order of return is the opposite.
2. When choosing a private equity fund company, it is best to know whether the private equity fund is compliant and whether it has been filed by the Securities Fund Industry Association.
3. Choose a good fund manager, including the manager's past performance and industry reputation.
Supplement: Private equity funds are divided into sunshine private equity and general private equity. Sunshine Private Equity is issued as a trust company, with high license threshold and high product security. But if it is linked to stocks, we should be careful of the risks of the securities market itself. General private placement needs long-term observation before establishing cooperation.