Private equity funds are products that pursue absolute returns, which can meet the financial needs of large investors in pursuit of high returns. In addition, private equity funds are more flexible because there is no 60% investment position limit. When the market is good, they can operate in Man Cang, and when the market is bad, they can clear their positions, which can effectively avoid the systemic risk of the A-share market that has been difficult to overcome.

Specifically, private equity funds have five advantages:

First of all, private equity funds have much lower requirements for information disclosure than public offerings, and their investments are more hidden, professional and skilled, and their returns are usually higher.

Secondly, the incentive mechanism of private equity funds is stronger, which is closely related to the fund manager's own interests, so the fund manager's dedication is stronger.

Third, private equity funds can tailor their investment service products to meet their special investment requirements.

Fourth, private equity funds are generally closed-end partnership funds, which are not listed and circulated, and the pressure of fund redemption is small.

Finally, private equity funds have simple organizational structure, flexible operation and high freedom of investment decision.