Fund investors will buy some Public Offering of Fund or chip in to buy private equity funds. If they have sufficient funds, they can buy Public Offering of Fund or private products, but many people can't tell why. Today, Bian Xiao will talk to you about buying Public Offering of Fund or private equity funds.

First, private equity funds make people feel higher-end and better, especially when many public investors come out to do private equity.

Second, buying actively managed products depends more on people and platforms. The managers in Public Offering of Fund change frequently, and the fund you buy may change one day; Managers of private equity funds are usually partners of the company, and the changes are not so frequent.

Advantages of public offering funds:

First, you see that Public Offering of Fund has a low threshold, convenient daily purchase and redemption, and good liquidity.

2. The annual management fee of Public Offering of Fund for stocks is 1.5%, the annual management fee of private equity funds is 1% ~ 1.5%, and there is also a 20% performance commission. Therefore, from the perspective of fees, private equity funds charge investors more.

Third, because of moral hazard, private placement must be reliable. Due to the higher charging mode of private placement, private placement institutions are required to have stronger absolute profitability in order to live up to this sharing mechanism.

Fourthly, Public Offering of Fund has made relative gains and compared its performance with the market. Private placement pursues absolute returns, so it must be able to withstand the retreat. It is difficult to achieve small fluctuations and high returns. Therefore, compared with public offering, private offering should be a fund public offering with a slow bull market and less losses in a bear market, but it won't last long.