First, the real project information
Illegal fund-raising can be seen through project information and platform targets. Publishing the target through P2P platform, illegally raising investors' funds, leading to illegal and criminal acts that are not in compliance. At that time, investors' funds will be completely swept away, and even investors' information will be used by criminals.
The fund property of a private equity fund must be different from that of the fund manager. Private equity funds are generally initiated by a project, and the purpose of the funds needs to be indicated in the fundraising agreement. And the real project also includes whether the funds are earmarked. It is best to entrust a third-party institution with custody or entrusted loans. Fund property must be distinguished from the property of the fund manager.
Second, whether to publicly raise.
The means of illegal fund-raising is generally promoted through Internet financial means such as P2P platform, and fund-raising is made public to the public. Private equity funds can only raise funds from specific targets in private, not through public platforms such as SMS, WeChat and blog.
3. Is there a limited number of people?
Fraud of illegal fund-raising through P2P platform generally requires a lot of money, so there is no limit on the number of people. The more investors there are, the more funds can be illegally occupied, and the number of people is the biggest weapon for illegal fund-raising. Private equity funds limit the number of investors and are strict. Once the number of investors exceeds the limit, it may constitute illegal fund-raising.
Fourth, whether to promise benefits.
Illegal fund-raising P2P platforms will lure investors with "high-yield" gimmicks, or deceive investors with proceeds such as risk reserve funds and collateral, while private fund managers and private fund sales organizations of private equity funds may not promise investors that the investment principal will not be lost or the minimum income will be promised, and only "expected income" can be emphasized.
No matter whether it is illegal fund-raising or private fund-raising, a good P2P platform occasionally has the risk of illegal fund-raising, and private fund is also prone to the risk of illegal fund-raising. In this regard, investors still need to learn some basic concepts of investment and financial management.