Private equity funds to explore fixed investment products

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100 yuan notes are lined up.  Photo: Reuters/Jason Lee

Several FOF funds, private equity funds and brokers, including First Capital Securities, announced in Shenzhen the introduction of a fixed investment platform aimed at helping solve the timing problems that generally hamper investors, Yicai.com reported.

The platform also aims to provide private equity fund products for investors to invest at a fixed time at a fixed amount. Through simple periodic and fixed investment, investors can avoid chasing and selling funds due to the subjective judgment of market timing.

Such fixed investment products have been developed for years in the public funds sector. While in the private equity funds area, there is no precedent because of its more complicated trading rules, such as fixed open days and closed periods.

Li Chunyu, the founder of simuwang.com, a website that deals in private equity fund products, said not all private equity funds are suitable for fixed investment and they can be difficult to select. Some products can see revenue up to 576%, while some can affect losses of 25%.

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