1. The thresholds are different.

Public funds generally start with 1,000 yuan, and can start as low as 100 yuan; private equity funds are aimed at high-net-worth clients, and the threshold is 1 million yuan. In order to control the scale, some private equity funds will further raise the threshold.

2. Position limits.

Public placements generally have upper and lower limits on positions; private placements can choose full or short positions, and some can also use stock index futures to hedge risks.

3. Cost.

Public equity and private equity are similar in many items, including subscription fees, fixed management fees, and redemption fees. However, Sunshine Private Equity Fund charges an additional investment income share.

4. Liquidity.

Open-end funds can be redeemed every trading day, and funds usually arrive in T+3 working days, so liquidity is very good.

Private placements can only be redeemed on fixed opening days each month or quarter.

5. Investment research strength.

Public fundraising has a large investment research team, full support from external research institutes, and strict investment processes and compliance risk control systems.

Private equity is generally smaller in scale and has smaller investment research teams.

6. Information disclosure.

The information disclosure of public offerings is very strict, and information such as the top investment targets and holding ratios must be disclosed every quarter.

Private placements have relatively low information disclosure requirements, and their heavy holdings have always been highly confidential.

7. Sale method.

Public equity funds raise funds through public offerings, while private equity funds raise funds through non-public offerings.

Therefore, we can see that private equity uses various methods to increase visibility and exposure, which can attract investors to actively seek out their products.

What are the advantages of private equity funds compared to public equity funds? 1. Private equity fund products are more targeted.

Public funds are open to the general public and are too common.

Since private equity funds raise funds from a small number of specific targets, their investment goals are more targeted and they are more likely to tailor-made investment service products for customers. The risk-return characteristics of the portfolio can meet customers' special investment requirements, and investments can be customized.

2. Private equity funds are easier to style.

Public funds are actually more like a big pot of rice, meeting common needs, but it is not so easy to form a specific style.

Since private equity funds have higher entry barriers and the investors they mainly face are more rational, and the relationship between the two parties is similar to a partnership, fund managers are less troubled by redemptions at any time like open-end funds.

Only by giving full play to the advantages of their own ideas like Buffett can fund managers achieve long-term and stable excess profits.

3. Private equity funds have higher yields.

This is the vitality of private equity funds, and it is also what surpasses public equity funds.

Since fund managers are uniformly more conscientious and have better space to practice their investment ideas, and they do not have to regularly disclose detailed investment portfolios like public funds, the investment rate of return is actually higher.

To simply understand, private equity funds have performance rewards of up to 20%, and the investment portfolio is very flexible and can even be fully stocked, so its returns are also very considerable.