How are public offerings and private equity funds generally distinguished? Do you know the advantages of choosing Public Offering of Fund? The following is how to distinguish between public and private funds brought by Bian Xiao, hoping to help you to some extent.
How to distinguish between public offering and private offering?
Definition: publicly raised funds raise funds to the public, and managers manage and invest in accordance with the provisions of the fund contract and operate openly; Private equity fund is to raise funds privately from specific investors and implement closed operation.
Investor status: the public offering of funds can be open to any individual or institutional investor; Private equity funds are usually only open to institutional investors or individual investors with certain economic strength.
Investment threshold: Public Offering of Fund's general investment threshold is relatively low, and ordinary investors can participate with lower funds; Private equity funds usually need a higher investment threshold and a larger amount of funds.
Fund size: Public Offering of Fund usually has a large scale and a wide range of funds; Private equity funds are relatively small and the number of investors is relatively small.
Transaction liquidity: Public Offering of Fund can usually purchase and redeem in the securities market, which has good liquidity; Private equity funds are generally closed and cannot be redeemed at any time, so their liquidity is relatively poor.
Advantages of public offering funds include:
Openness and transparency: Public offering of funds must comply with relevant regulatory requirements, and disclose information such as investment portfolio and net value of funds, so that investors can know the operation of funds in time.
Diversification of risks: Public Offering of Fund generally adopts diversification strategy, and invests funds in different stocks, bonds and other assets, which can better diversify risks.
Low-threshold investment: The investment threshold in Public Offering of Fund is relatively low, and ordinary investors only need a small amount of money to participate, thus lowering the investment threshold.
Regulatory protection: Public Offering of Fund is strictly regulated by regulatory agencies, and the rights and interests of investors are protected to a certain extent.
Practical methods of adding stocks.
1. Olive Masukura Method
Suppose the price is about to rise, buy it with a small amount of money first. Once you make a profit, you don't close your position, but buy it in large quantities with funds several times that of the first stock transaction; If the price continues to rise, it is possible to invest all the remaining funds, and the overweight funds are light at both ends and heavy in the middle.
2. Pyramid Masukura Method
Common trading methods in the stock market. That is, first buy a fixed position at a certain price. When the price rises to a certain extent, buy it with less money than the first position. If the stock price continues to rise later, buy it with a smaller position than last time. And so on, gradually reduce the overweight funds.
3. Inverted Pyramid Masukura Method
That is, for the first time, try to buy in a smaller position. If the market rises and investors feel good, they will buy more chips than the first time, and so on, and the overweight funds will increase step by step.
4. Equal-than-plus warehouse method
Before stock trading, the investment will be divided into several equal parts. When the market rises step by step as expected, it will increase the position step by step according to the same amount of funds every time.
5. Probability trading method
In this method, the profit standard is based on the success rate. There is no systematic fund management method to increase and decrease the positions of a stock in batches. As a result, either stop loss or take profit, all of them completed a round of stock trading at one time. For example, if an investor is optimistic about a stock, he will buy a stock with a fixed position. When he reaches the stop loss position, he will clear the position and leave. When he reaches the target position, he will make a profit, and he will participate in multiple stocks in a decentralized way.
What is private equity investment?
Private equity investment in stocks refers to a way to invest in stocks through private equity funds and other channels. Private equity investment usually requires investors to meet certain qualification requirements and invest in accordance with the provisions of private equity funds. The following are the general ways and processes of private equity investment:
Qualifications: Investors need to meet the requirements for the establishment of private equity funds, such as reaching a certain threshold of net assets and investment experience.
Finding suitable private equity funds: Investors can search and screen suitable private equity fund products through their own research or with the help of professional financial institutions, and choose suitable funds according to their investment needs and risk preferences.
Subscribe to private equity funds: investors need to buy fund shares from private equity fund managers, usually meeting a certain minimum subscription amount.
Portfolio management: Private fund managers will manage the raised funds, including stock selection, asset allocation and risk control.
Investment period: Private equity investment generally has a certain lock-up period or withdrawal period, and investors need to wait for a certain period of time according to the provisions of the fund before withdrawing or redeeming their fund shares.
It should be noted that private equity investment has high risks, and investors should fully understand the relevant risks and make investment decisions cautiously. Before investing in private equity, it is recommended to seek the advice of professional financial advisors or investment advisors, and read relevant fund contracts and risk disclosure documents.
How to invest in stocks for a long time
Long-term value is the trend, and only the trend can be correctly predicted. The price fluctuation on a certain day is not big for long-term investors, and it feels that it has nothing to do with them. He doesn't care about how the market will go the next day, only about whether the trend is over. As a long-term trader, the endurance of holding positions is something that ordinary investors can neither understand nor tolerate.
There is a misunderstanding in the market that a long-term trader can hold a position for a long time, because he can predict the market trend and the end point, so he can safely hold it for a long time! This is a big misunderstanding! In fact, long-term traders don't know the future trend of the market like you do. They just follow the rules and follow the crowd.
If you want to be a long-term investor, you must have the following mentality:
1. The speculative mentality should be reduced.
This requires investors to have a correct and rational investment philosophy, and stock price fluctuations should not generate too many ideas. Investment is not speculation, it depends on the long-term rather than the short-term.
2. impetuous mentality should be changed.
Long-term investors should be patient. After the stock price rises to a certain extent, they should not only dare to hold shares, but also dare to make up their positions at a low level and strengthen the long-term investment concept.
It's not a day or two to queue up.
In the long run, we will always have to be laid off. Don't panic at this time, calm down and find the next good investment opportunity to invest.
4. Keep a cool head and avoid panic.
For some long-term investors, it is easy to panic if they see bad news. At this time, they will lose confidence and make the long-term short. So when you do it for a long time, you must be clear-headed, do considerable analysis, and don't panic.
5. Do not need frequent operation for a long time.
In the long run, frequent operations should be avoided, which will only increase costs, reduce profits and increase risks.