Is private equity fund safe?
Private equity funds can generally be divided into sunshine private equity and general private equity.
Sunshine private placement is a trust company, and the license threshold of the trust company is relatively high, so the product funds issued are highly secure. But if products are linked to stocks, then we should be careful of the risks of the securities market itself.
Generally, the security of private placement is not as high as that of sunshine private placement, and it generally needs long-term observation and understanding before buying.
Generally speaking, it is safe to buy private equity funds. The security here refers to the private equity fund you bought, and you rarely run away with the money. However, private equity funds are also risky, and the risk is a bit high, because private equity funds are equity investments with high risks and high returns, which are allowed by law.
What are the risks of private equity funds?
1, the risk of opaque information, private equity funds do not have strict information disclosure requirements.
2. The risk of illegally absorbing public deposits. Some private equity funds may deliberately exaggerate their income and conceal their projects to attract people to participate in the investment, thus exposing the funds to the risk of illegally absorbing public deposits.
3. The risk of mismatch in anti-risk ability. If you invest in private equity funds, you expect to get high returns from private equity funds, but you may not have the corresponding ability to resist risks, because when private equity funds neglect proper management, it is easy to lead to risk mismatch.