For example, suppose you have a sum of money to invest in bonds, stocks and other securities to increase the value, but you have no energy, professional knowledge and not much money, so you want to invest in partnership with 1 other people, so you hire an investment expert (theoretically higher than us) to operate the assets jointly invested by everyone to increase the value and take the lead in this matter. He took the lead in making efforts to make arrangements for big and small things, reminding the experts of the risks at any time, regularly announcing the investment profit and loss to everyone, etc., and he was not busy in vain, and he was given a certain percentage of the assets from everyone on a regular basis, and the money in the commission also included his labor expenses. These things are called partnership investment. Enlarging this partnership investment model by 1 times and 1 times is the fund. This partnership investment activity has been approved by the national securities industry management department (China Securities Regulatory Commission), allowing the lead operator of this activity to publicly raise and attract investors to join the partnership investment. This is the issuance of Public Offering of Fund, which is now a common fund. If a private partnership investment activity has established a complete contract among the investors, but it has not been recognized by the relevant laws and regulations of the state financial industry supervision, it is a private equity fund. It should be said that the law neither prohibits nor encourages it, and it is in a vague area. The private equity fund issued through trust companies is relatively reliable because the fund supervision is effective.

Public Offering of Fund raises funds through public offering, while private equity funds raise funds through non-public offering, which is the main difference between private equity funds and Public Offering of Fund. In China, Public Offering of Fund advertises in public media to attract customers, while private equity funds can't use any media to advertise when attracting customers.