Private investment fund refers to the fund that mainly participates in the private placement of listed companies, that is, the investment fund that mainly invests in the non-public offering of shares by listed companies. Private placement allows investors to buy good stocks at a discount, but only a few people and big funds can participate. In fact, the players participating in the fixed increase are mainly large institutional investors, and investors within 10 provide hundreds of millions to billions of funds to buy new shares issued by listed companies. But private placement also has risks.

Ordinary investors can participate in private placement through Sunshine Private Placement, fixed-income products issued by trust, or buy fixed-income funds issued by Public Offering of Fund, thus increasing market opportunities for ordinary investors.

Although private placement is attractive to investors with large capital, the lock-up period of 1 year will still bring systemic risks to investors. Once the market turns, the risk of investors participating in private placement will increase. In other words, when issuing additional shares, there may be a risk that the market price is lower than the spot price.

Although private placement has developed rapidly in recent years, it is still in a legal blank in many aspects because of its rapid development and insufficient market progress. You must pay attention to these risks when you participate in private placement.