Legal analysis: Private equity fund itself has certain advantages, and the income is generally good. Private equity funds will charge subscription fees, but most of the income comes from the fund's performance share, simply to create a new high of 20% for investors. Private equity funds operate flexibly with little fluctuation. Private fund managers are more free to make decisions and can control the market. Private equity funds are flexible in operation. In case of bear market, they can not only short, but also short stock index futures and buy put options to make a profit. In a volatile market, private equity funds can make long or short fluctuations in the options market. In short, bear market and bull market can make money.

Legal basis: Interim Measures for the Supervision and Administration of Private Investment Funds

Article 11 Private equity funds shall be raised from qualified investors, and the cumulative number of investors in a single private equity fund shall not exceed a certain number as stipulated by the Securities Investment Fund Law, the Company Law, the Partnership Enterprise Law and other laws.

Where an investor transfers a fund share, the transferee shall be a qualified investor, and the number of investors after the transfer of the fund share shall conform to the provisions of the preceding paragraph.

Article 14 Private fund managers and private fund sales organizations shall not raise funds from units and individuals other than qualified investors, and shall not publicize and promote them to unspecified objects through public media such as newspapers, radio, television and the Internet, or lectures, reports, analysis meetings and notices, leaflets, short messages, WeChat, blogs and emails.

Fifteenth private fund managers and private fund sales institutions shall not promise investors that the investment principal will not be lost or promise the minimum income.