First, the understanding of the ability of fund managers. We all evaluate the ability of fund managers from their past experience and performance. Investors can know whether the fund manager has formal work experience and the reputation of the industry through consultation. At the same time, whether the past performance of fund managers is stable, especially in bull market and bear market, whether the investment performance of fund managers can outperform the market. The core figures of private equity funds mainly come from three categories: excellent Public Offering of Fund managers, brokers and non-governmental people. From the origin analysis, the performance of private fund managed by fund managers from public offering is obviously better than that of fund managers from securities firms and private placement, such as Danshuiquan series (Zhao Jun), Shang Ya series (shi bo), Xingshi series (Kong Fai) and Wudang series (Tian Ronghua).
Second, whether your investment style is consistent with the fund manager. Investors need to know whether the investment style of fund managers is suitable for their own requirements and their own risk preferences. Special emphasis on the investment strategy of fund managers, positive, steady or conservative? All these require investors to understand carefully, and at the same time, they need to combine this with their own risk tolerance. Since there are no special laws and regulations to supervise private equity funds, there are no restrictions on the investment of private equity funds. Fund managers can flexibly choose targets, not only investing in stocks, but also including futures, foreign exchange and gold. Investors need to determine which varieties to invest in the contract.
Third, the understanding of the scale of investment funds and access threshold. Each fund has its own scale, which is related to the investment plan. Private placement is a relatively high-yield and high-risk investment method, and investors' risk tolerance should be considered.
Fourth, understand the operation mode of investment companies. There are many modes of private placement, some are agreement, some are company and some are partnership. But most of them are trusts at present. Under the condition that the current legal system is not perfect, the law requires that the fund trust must be entrusted. Relatively speaking, moral hazard is relatively low.
Fifth, the risk control ability of investment management companies. Relatively standardized companies will have their own set of risk control systems. From the selection of individual stocks to the occurrence of emergencies, there is a set of procedures to reduce avoidable risks.
Sixth, the way to share. Investors should not completely look at the rate of return, because a high rate of return does not necessarily mean that their return on investment will be high, but also depends on the proportion. Generally speaking, the ratio will agree on a guaranteed expected rate of return. Generally speaking, the more detailed the rate of return, the better. Investors can have a clear understanding of their own income in time and in detail.
Seventh, consult a third-party organization. When investors choose the target investment management company, they can know something about the products through third-party research institutions. Third-party research institutions conduct quantitative and qualitative research on the entire private equity product of Sunshine, and divide the stars accordingly. Investors can understand product information from a more objective, true and fair perspective.