First of all, we need to understand the basic differences between private equity funds and bank financing. Private equity fund is a kind of fund for specific investors, which is not publicly issued. Usually managed by management institutions, it provides more flexible and diverse investment choices for high-net-worth individuals and institutional investors. Bank financing is a kind of financial product issued by banks, which is generally oriented to retail investors and has the characteristics of low threshold and low risk.

In this case, Mr. Li invested in private equity funds. Because private equity funds are for specific investors, the risks are relatively high. According to the information provided by Mr. Li, the private equity fund has been in operation for four years, with a loss of 9 1.2%. This means that the investment strategy of the fund failed and failed to bring the expected return to investors. Therefore, Mr. Li's investment principal suffered huge losses.

Theoretically speaking, the loss of funds is not directly earned by anyone, but because of the failure of investment strategy and management of the fund, which leads to losses. Any kind of investment must bear investment risks. Investors need to make investment decisions according to their own risk preferences, investment objectives, financial strength and other factors, and at the same time, they need to fully investigate and evaluate investment varieties and investment institutions to reduce investment risks.