Usually we can buy two kinds of funds, Public Offering of Fund and private equity funds.

_ Investment threshold

Public Offering of Fund is open to the public, and the threshold for investors is very low.

From the way of raising funds, public offering means public offering and raising funds publicly.

Many Public Offering of Fund are invested by dozens of Qian Qi, and there is no limit to the number of investors.

For private equity funds, the investment threshold will be higher, generally starting at 1 10,000.

At the same time, a single product of private equity fund will have an upper limit of 200 people.

Therefore, the scale of a single private equity fund product will not become too large.

_ charging mode

Another big difference between Public Offering of Fund and private equity funds lies in the charging mode.

Public Offering of Fund usually collects management fees, and the annual management fee is usually 0.5% ~1.5%;

Private equity funds, usually double fees, management fees+performance compensation.

Like overseas markets, the charging mode of private equity funds is usually 2%+20%. That is, 2% management fee, plus 20% profit as performance reward.

Of course, not all private equity funds are so expensive.

Some private equity funds are even more conscientious in charging fees, and there are even private equity funds with a management fee of 0% and a relatively low performance reward.

These will be written in the fund contract. Before investing, you can pay attention to choosing private equity funds with lower rates.

Private Equity Fund Income Private Equity Fund or Public Offering of Fund, which income is better?

The number of private equity funds is much higher than that of Public Offering of Fund.

By the end of 20 19, there were 8857 private equity fund companies in China.

There are only 100 public funds.

Because the threshold for the establishment of Public Offering of Fund Company is very high, it usually needs more than 200 million start-up funds, and it also requires the qualifications of shareholders and the investment team.

The threshold for the establishment of private equity funds is low, and usually more than a dozen people can set up private equity fund companies.

Private equity fund companies should pay attention to whether the investment logic of fund companies is recognized by themselves.

Judging from the past average performance, the average performance of more than 8,000 private equity fund companies is lower than that of Public Offering of Fund.

Among them, the top private equity firms performed well. Many private fund companies, founders and fund managers are also from Public Offering of Fund companies, that is, "listing for private placement".

Private equity is also a skill that needs attention.

What's the difference between the investment strategy of Public Offering of Fund and private equity funds?

Generally speaking, Public Offering of Fund has higher investment requirements.

For example, Public Offering of Fund generally has the double ten rule:

In a fund, the proportion of individual stocks does not exceed10% of the fund;

The proportion of fund companies holding listed companies shall not exceed 10% of listed companies.

The purpose of decentralized configuration is to reduce risks.

Private equity funds, generally without too strict requirements, will be more flexible and more volatile.

For another example, we have launched an index enhancement fund before.

Enhance strategies, and some use quantitative strategies.

Quantitative strategy, with low-frequency quantitative strategy, will hold stocks for a longer period of time.

There is also a high-frequency quantitative strategy, which holds stocks for a short time, sometimes even for a day or two, and the stocks in hand will be bought and sold again.

Public Offering of Fund, generally not allowed to do high-frequency quantization strategy, generally low-frequency quantization;

Private equity funds have fewer restrictions, and some private equity funds will make high-frequency quantitative strategies.

Flexible strategy is a double-edged sword.

It means more investment opportunities, but conversely, the fluctuation will be greater.

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In fact, whether you invest in Public Offering of Fund or private equity funds, you need to know the investment strategy of the corresponding funds first.