2. Private equity funds grew up tenaciously in the blood pool of market development. Although there are many frauds and irregularities, private equity funds have been evading and working underground since the day they were born. However, more and more private equity institutions have been in the "underground" state. They are spontaneously "grown" by market demand, and their tenacious vitality is remarkable.

Private equity funds lacking compliance status are a double-edged sword for small and medium-sized investors with relatively weak self-protection awareness. On the one hand, the flexible operation mode and successful operation level of some private equity funds have brought investors greater investment opportunities; On the other hand, small and medium investors generally lack the ability and effective means of self-protection. Even if there is a sense of self-protection, when their rights and interests are damaged, they will form a joint collective to compete with the infringer. However, due to the scattered individual combination, they will be unable to safeguard their rights and interests because of the lack of effective organizers, professional knowledge and high joint cost.

3. There are two main operating modes of private equity funds.

The first is the guarantee. The foundation gives the guaranteed funds to investors and sets the bottom line accordingly. If it falls below the bottom line, the operation will be automatically terminated and the guaranteed funds will not be returned.

Second, customers can receive account numbers (that is, customers only need to give their account numbers to private equity funds). If it falls below 10%, the customer can automatically terminate the agreement, and the part of the profit exceeding 10% will be divided according to the agreed proportion, aiming at familiar customers and large enterprises.

Since there are so many people doing it, the income is still good. You'd better weigh the pros and cons yourself and see if it suits you.