Private placement is the behavior of high-quality listed companies with good investment projects to issue additional shares in order to raise investment funds. The price of additional issuance usually enjoys a certain discount relative to the market price, so it has a certain margin of safety.

Private equity funds appearing in the market usually operate in the form of sub-funds with main funds. The main fund participates in private equity investment all the year round, and obtains the average expected annualized expected return of private equity investment. The sub-fund obtains a certain share of the main fund by purchasing the main fund, and indirectly holds the portfolio of all the stocks in the main fund during the duration, but the sub-fund does not invest in one or several private equity stocks. The expected annualized expected return of the sub-fund comes from the difference in the net value of the main fund unit when it purchases and redeems the main fund.

Second, will the Foundation lose money?

The fixed-income fund is to strive for a larger fixed-income share by gathering the money of retail investors. Generally, the lock-up period is 18 months, and private fixed-income funds will also receive 20% performance rewards.

To put it bluntly, the fixed-income fund is such a financial tool to bet on the market after 18 months. If you bet on this thing correctly, you can make a lot of money. You see, those who are bored in the bull market are all rich people. Gambling is wrong. Look at more than 100 stocks that have only fallen below the fixed price. This is a precedent, so the fixed fund will also lose money. Now the market is around 3000 points. If you plan to buy a fixed-income fund, ask yourself what is the market position after 18 months?