The Difference between Private Equity Fund and Public Offering of Fund
1, fundraising method
Public Offering of Fund raises funds from investors by publishing, which can be published and sold according to TV books, newspapers, official websites and financial institutions. Private equity funds cannot be made public, and can only be made public to special institutions or individuals.
The threshold for buying Public Offering of Fund is relatively low, generally 1 1,000 yuan, and some fund companies have developed to 1 1,000 yuan, which can be redeemed anytime and anywhere during the trading hours. The threshold of private equity investment is relatively high, generally 1 ten thousand yuan, so many investors who want to buy private equity funds are only afraid.
2. The scale of commodity management is different.
In Public Offering of Fund, the total assets of a single fund are generally in the hundreds of millions to tens of billions of RMB, and the stock pool generally has dozens to hundreds of stocks. However, the total assets of private equity funds are only several million to several billion RMB.
3. Investment restrictions
Public Offering of Fund has many restrictions on individual stock investment, such as holding at least 60% positions and not participating in stock index hedging transactions.
The positions of private equity funds are more flexible, and they can lighten their positions or Man Cang, and they can participate in investment in many financial industries such as individual stocks, stock indexes and futures trading.
4. expenses
The key to Public Offering of Fund's revenue comes from the fixed service fee, because the scale of Public Offering of Fund's operation is huge, and the annual fixed service fee can maintain the normal operation of all Public Offering of Fund enterprises.
The key to the fixed income of private equity funds is the fluctuating service fee, and the deduction standard of this fee is that private equity companies get 20% profit from the net value of fund funds per innovative high school, which means that private equity companies can only make profits on the premise of making money for investors.
5. Asset liquidity
The liquidity of Public Offering of Fund is very good, while the liquidity of private equity funds is relatively weak. Some private equity funds cannot be redeemed from June to 1 year after subscription.
6. Information disclosure
China Securities Regulatory Commission has strict information disclosure regulations on Public Offering of Fund, and Public Offering of Fund must publish its investment composition, shareholding ratio and other information in detail every quarter. However, the information disclosure regulations of private equity funds are low, which has strong security in the whole investment process.
7. Investment category
Only invest in stocks or bonds, not in shares of unlisted enterprises, not in real estate, not in risky companies, and private equity funds can.