What is Public Offering of Fund and Private Equity Fund?
Public Offering of Fund is a public offering fund, which can be purchased and redeemed through the stock exchange and other channels. There are a large number and scale of investors in Public Offering of Fund, usually managed by professional fund management companies, and their investment strategies are diversified.
Private equity fund is a fund set up for a certain range of specific investors, whose investors need to meet certain access conditions, such as institutional investors or individual high-net-worth investors. Private equity funds are usually sold directly to investors by fund managers or fund companies and cannot be traded in the open market. The strategies and risks of private equity funds are professional and complex, which is suitable for investors who pursue high returns.
What is the difference?
1, different fundraising methods
Public offering of funds is a public offering to investors, and anyone can buy it. Public Offering of Fund is usually sold through securities companies, fund management companies and other channels, and listed and circulated on the stock exchange. Private equity funds are generally only issued to specific institutions or individual investors and need to comply with relevant laws, regulations and regulatory requirements.
2. Different investment thresholds
Because Public Offering of Fund is open to investors, its investment threshold is usually low, and the initial investment amount of many products is only several hundred yuan or several thousand yuan. However, the investment threshold of private equity funds is relatively high, which generally requires investors to have certain financial conditions or professional knowledge background.
3. The investment scope is different.
Public Offering of Fund usually has a wide range of investments, and can invest in stocks, bonds, money markets and other assets. The investment scope of private equity funds is relatively narrow, and equity investment, real estate investment and venture capital are usually the main investment areas.
4. Different regulatory requirements
Public Offering of Fund is a securities product, which is strictly supervised by China Securities Regulatory Commission. The regulator of private equity funds is China Fund Industry Association, which is not directly regulated by the regulatory authorities as in Public Offering of Fund. The supervision of private equity funds is relatively low, but it is generally necessary to abide by relevant laws and regulations.
5. Different investment risks and returns.
Due to the different investment scope and target investors, there are also differences in risks and returns between Public Offering of Fund and private equity funds. Private equity funds usually have higher risks, greater return potential, and pay more attention to long-term stable income performance. Public Offering of Fund, on the other hand, is relatively stable, and its income is relatively stable and predictable.