Fund products in the market are generally divided into Public Offering of Fund, private equity funds and Public Offering of Fund special accounts. Everyone is familiar with Public Offering of Fund and private equity funds, but what is Public Offering of Fund special account is not very clear, and what is the difference between Public Offering of Fund special account and Public Offering of Fund and private equity funds is even more unclear.

what does Public Offering of Fund special account mean?

officially speaking, Public Offering of Fund special account is a product set up by Public Offering of Fund management company to raise funds from a specific customer or to be entrusted as an asset manager by a specific customer's property. In fact, it is equivalent to "private placement in public offering" and is a product set up for a specific customer.

what's the difference between Public Offering of Fund special account and Public Offering of Fund and private equity fund?

From various angles, there are five major differences among Public Offering of Fund, private equity funds and special fund accounts:

1. Ways and targets of fund raising

Public Offering of Fund is open for sale, targeting at unspecified public investors; Private equity funds and special accounts in Public Offering of Fund raise funds from specific qualified investors in a private way, and this group is also in a minority.

2 investment threshold

Public Offering of Fund has a low investment threshold, and the initial investment amount is 1 yuan. However, private equity funds and fund account products have restrictions on investors' net assets, financial assets and investment experience, and the starting amount of investment is relatively high.

3 information disclosure

Public Offering of Fund needs to disclose information such as investment portfolio and daily net value in accordance with the regulations of the CSRC on fund management, and regularly disclose quarterly, semi-annual and annual reports; Private equity funds and fund accounts are relatively confidential, and through the implementation of industry self-discipline management, investment information is only disclosed to investors of this product.

4 Different liquidity

Public Offering of Fund with open operation can purchase and redeem at any time after a period of closed operation, and some Public Offering of Fund products can also be listed on the secondary market for public trading, with high liquidity. The opening frequency of private equity funds and fund accounts is generally determined according to the fund contract, but it is generally not open for redemption every trading day, and there is a certain closed period.

5 Different investment objectives

Public Offering of Fund's income comes from the daily management fee, and no performance reward is extracted. Its main objectives are to improve the ranking in the industry, gain relative income beyond the performance comparison benchmark and increase the scale. However, private equity funds and fund accounts tend to have a higher proportion of performance rewards, which is the main source of income, and the pursuit of absolute income and excess income, so the investment scope is broader, involving derivatives and so on.

The above is the meaning of Public Offering of Fund special account. In fact, from the analysis, Public Offering of Fund special account and private equity fund are similar in many aspects, and there is not much difference.