Characteristics Compared with public securities investment funds, private securities investment funds have the following characteristics:
1. Private equity investment funds have great restrictions on investors. Usually investors are limited to some large investment institutions or some qualified individuals, not as extensive as public equity investment funds.
2. Different from the publicly raised funds of public securities investment funds, the funds of private securities investment funds are raised in a non-public way.
3. Private equity investment funds have low requirements for information disclosure, unlike public equity investment funds, which need to publicly disclose investment objectives and portfolios. Therefore, compared with private equity investment funds, public equity investment funds have stricter requirements for information disclosure.
4. At present, there is no special law to regulate private equity investment funds in China, so private equity funds are still in a gray area. Of course, at present, a considerable number of people are increasingly demanding legislation on private equity investment funds, and I believe that relevant laws and regulations may be promulgated in the near future.
Advantages Compared with Public Offering of Fund, private equity investment funds have great advantages. First of all, in terms of flexibility, Public Offering of Fund has a certain proportion limit, while private equity investment funds are completely unrestricted. Once a private equity fund finds an undervalued stock, it can choose as many investments as possible. Of course, this phenomenon also urges private equity investment funds to spend more energy on enterprise research and understand the situation of some listed companies.
Moreover, the profits of private equity investment funds mainly come from the distribution of performance income. The greater the profits created for customers, the more their income will be, which urges fund managers to try their best to improve the return rate of funds.
Moreover, private equity investment funds have great advantages over Public Offering of Fund in investment decision-making. Because the research department in Public Offering of Fund has found a stock with great investment value, a series of research and discussion will be conducted before deciding whether to invest in this stock. Private equity investment funds do not need to consider these processes at all, and once they find the stocks that need to be invested, they can respond accurately.