Not safe and risky.

The biggest risk for private equity funds is moral hazard. The quality of private equity fund managers varies, and there are many private equity fund companies that have lost contact.

Personally, it is recommended that 20-30% of the salary be deposited in the bank or a third party (Alipay, WeChat), depending on the situation. Use 20%-40% to make investments with less long-term risk (physical commodity trading projects, investment in Ideal Financial Management P2P), and the remaining 30% for daily consumption or risk reserves.

However, it was only after the promulgation of the Securities Investment Fund Law of the People's Republic of China on June 1, 2013 that private equity funds began to be included in legal supervision. It can be seen that the legality of private equity funds needs to be improved, and it will take some time to move from private to public ownership. The market's position on private equity funds needs to be strengthened on the legislative side.

Extended information:

Introduction to the characteristics of private equity funds:

Private equity funds

The scope of fundraising objects of private equity funds is wider than that of public equity funds. Narrow, but its fundraising targets are institutions or individuals with strong financial strength and high-quality capital composition, which makes the funds it raises not necessarily inferior to public funds in quality and quantity. It can be an individual investor or an institutional investor.

Equity investment

In addition to pure equity investment, there have been disguised forms of equity investment (such as investment in convertible bonds or corporate bonds with stock options), and equity investments. A portfolio investment method that focuses on investment and is supplemented by debt investment.

High risk

The risks of private equity investment first stem from its relatively long investment cycle. Therefore, if private equity funds want to make profits, they must make certain efforts, not only to meet the financing needs of enterprises, but also to bring benefits to the enterprises. This is destined to be a long-term process.

Participate in management

Generally speaking, private equity funds have a professional fund management team with rich management experience and market operation experience, which can help companies formulate policies that meet market needs. Develop strategies and improve business operations and management. However, private equity investors only participate in corporate management, not control the company.