A public equity fund is an investment vehicle in which each investor owns a pro-rata portion of the income and the risk of the fund. This type of fund invests in publicly traded equity securities and aims to outperform its benchmark, the Kuala Lumpur Composite Index. Its investment strategy involves investing in Malaysian equities and certain fixed income instruments.
In China, there is a growing number of young investors who are rushing into the public equity fund market. These funds invest in a portfolio of stocks, but they do not offer any guarantee of return. A public equity fund is not suitable for every investor, and there is no one-size-fits-all investment strategy.
A public equity fund can be an excellent option for beginners because you can invest with as little as a thousand dollars. Unlike VC funds, you do not need a lot of money to invest. However, you do need a lot of expertise to make the right investments. A good public equity fund will be able to match you with an investment with low volatility.
A public equity fund is not suitable for large pension funds. Large pension funds are unlikely to make early-stage private equity investments. On the other hand, a private equity fund will actively seek out private market opportunities and provide a ready source of investment capital in all market conditions.