How risky are private equity funds?

Private equity funds mean high risks, flexible operations, and unstable performance. As the saying goes, "Investment is risky, so you need to be cautious when entering the market." This sentence is not just a saying, but also needs to be firmly remembered by investors. Especially private equity funds.

For domestic private equity funds, the main problem currently is the lack of legal basis and policy support, which puts them on the edge of law and policy. So far, my country's "Securities Law", "Trust Law" and other legal provisions have not made clear provisions on the meaning of private equity funds, sources of funds, organizational methods, operating models and other issues. The "Securities Investment Fund Law" was promulgated in October 2003. Due to many controversies, private equity funds have not been able to "correct their name".