How do private equity funds generally buy stocks? Do you know what the conditions are for us to buy private equity? The following are the types of private equity funds compiled by Bian Xiao, hoping to help you to some extent.
How many types of private equity funds are there?
There are many kinds of private equity funds. Here are some common types of private equity funds:
Equity investment fund: investing in the equity of non-listed companies, usually the equity investment of early-stage and growth companies. This kind of fund usually focuses on private equity investment, aiming at obtaining high risk and high return through equity investment.
Debt investment fund: Debt assets invested in the private market, such as bonds and trust loans. This kind of fund usually focuses on debt investment and pursues stable income and fixed income investment.
Real estate fund: mainly invests in various real estate projects, such as residential, commercial real estate and logistics real estate. This kind of fund aims to obtain rental income and capital appreciation through real estate investment.
Infrastructure fund: invest in infrastructure projects, such as roads, bridges, ports, electricity, etc. This kind of fund usually aims at long-term stable income and obtains income through the operation and charging of infrastructure projects.
Venture capital fund: investing in high-tech and innovative enterprises in the early and growing stages. This kind of fund aims to obtain high returns through venture capital, but it is also accompanied by high investment risks.
Other types of private equity funds include commodity futures funds, energy funds and funds within funds (FOF).
What are the risks of fund purchase?
Market risk: Fund investment involves market risks, including stock market fluctuations, interest rate changes, economic recession and other factors that may have a negative impact on the value of funds.
Credit risk: when the fund invests in bonds or other credit products, the issuer or guarantor defaults or the credit rating is downgraded, which may lead to the decline of the fund value.
Liquidity risk: when the fund encounters a large-scale redemption application, if the assets held by the fund are not liquid enough, the fund may face liquidity risks such as default and increased transaction costs.
Performance risk: the past performance of the fund does not represent the future performance. Investors should be aware of the risk of uncertain returns when purchasing this fund.
Risks stipulated by law: Private equity funds are required by specific laws and regulations, such as qualified investors' requirements and liquidity restrictions, which may affect investors' rights and operability.
Who can buy shares of private equity funds?
Private equity funds usually invest in qualified investors, not ordinary retail investors. Qualified investors refer to individuals or institutions that meet certain standards and have certain financial strength and investment experience. The specific purchase conditions vary according to national and regional laws and regulations.
Conditions for potential qualified investors:
Personal QFII:
High net worth people: personal financial net assets exceed a certain threshold, or annual income exceeds a certain threshold.
Professional investors: have relevant financial or investment professional background, or obtain specific investment qualification certification.
Institutional employees: employees of financial institutions such as financial institutions, securities companies and insurance companies, or persons who hold relevant positions.
Agency QFII:
Financial institutions: banks, securities companies, insurance companies, fund management companies and other financial institutions.
Enterprises and institutions: state-owned enterprises, listed companies, large private enterprises, etc.
Investment institutions: private equity fund management institutions, venture capital funds, asset management subsidiaries of securities firms, etc.
Please note that the standards of qualified investors vary from country to country, and each market may have its own regulations. The purchase of private equity funds needs to meet the corresponding regulations and regulatory requirements. Before buying private equity funds, investors should consult professional financial advisers or financial institutions to understand the specific purchase conditions and relevant regulations.
In addition, it should be noted that private equity funds may set a minimum investment amount, that is, the minimum subscription amount, which investors need to reach before buying private equity funds. Buying private equity funds has certain risks. Investors should carefully evaluate their investment objectives, risk tolerance and investment experience, fully understand the investment strategy of the fund, the background and performance of the fund manager, and make wise investment decisions.
What do you mean by "passive" buying and "passive" selling in stock trading?
If the price of a stock is 8.6 yuan, 8.5 yuan, 8.7 yuan and 8.8 yuan. The current price is 8.6 yuan, so when you place an order, the purchase price is above 8.7 yuan, which is called active purchase. If you place an order and buy it below 8.6 yuan, it is called passive purchase, that is, waiting for others to sell it to you.
Passive buying: it means that you set a buying price yourself and wait until the stock price falls to the set price before closing the deal.
Passive selling: it means that you set a selling price yourself and wait until the stock price rises to the set price before trading. Active buying: refers to the transaction amount of active buying. When selling occurs, the buyer takes the initiative to trade at the seller's selling price. Explain that it is optimistic about the stock market outlook (bullish), which is called the peripheral market. Active selling: refers to the transaction amount of active selling, and will be shipped immediately when buying occurs. The seller takes the initiative to close the transaction at the buyer's purchase price, indicating that he is bearish on the stock market outlook, which is called internal selling. Trading account The first thing a new shareholder should do is to open a stock account (that is, a shareholder card) for himself. A stock account is equivalent to a "bank account", and investors can only buy and sell securities by opening a stock account. If you want to buy and sell stocks listed in Shanghai and Shenzhen, investors need to open stock accounts in Shanghai Stock Exchange and Shenzhen Stock Exchange respectively. The opening of Shanghai and Shenzhen A-share stock accounts must be handled by the securities registration company or its authorized account-opening agency. There are many different kinds of stock accounts. Individual investors need to open A-share accounts if they want to buy and sell A-shares in Shanghai and Shenzhen stock markets.
Several methods to determine the buying (selling) price of stocks
Residual reversal of fifth-gear transaction
The residual cancellation of the fifth transaction refers to the market price declaration method, which takes the counterparty price as the transaction price. When the declaration enters the trading host, the transaction is made in the declaration queue of the best five prices of the counterparty in the centralized declaration book, and the unfinished part is automatically cancelled.
That is to say, to cancel the remaining declaration in the best five-file instant transaction is to use the price of "buy one" to "buy five" as the selling price or the price of "sell one" to "sell five" as the buying price in turn. If the declaration cannot be completed, the remaining unmatched amount will be automatically cancelled.