Research For Protecting The Interests Of Investors Who Invest In Private Investment Fund

Private placement investment fund has been an invest tool with mature operated mechanism in the developed countries, which fostered a number of investors like George Soros and Buffett, but it is just in the primary stage in China. This field needs proper supervisor and management. And the legal stature should be given to the private placement investment fund. The investors of the private placement investment fund also should know more about it in case of being fraud. It's not good for our capital market's development, financial system's improvement and investors' protecting if there is no special law about it. So the paper is mainly about how to design the system of private placement investment fund in order to protect the investors at the basic of learning other countries' rules. I mainly use comparative analysis and empirical analysis way to do the study. There are four parts in this paper.Part one starts the research from the basic theories of private placement investment fund. It is mainly about the definition of private placement investment fund, the essential quality of it, the organization form of it and its differences with public fund and illegal raising fund.Part two analysis why the investors suffered the lost. There are three reasons: lacking of special laws on private placement investment fund, the private placement investment fund's managers may breach the moral obligation and some factors because of the investors themselves.Part three conceives the regulation's design of the private investment fund to protect the benefits of the investors on the basis of the related regulations and laws abroad. Firstly, the market entrance requirement should be seriously designed. It is the most important part of private placement investment fund's rule. And above all, the qualification of the investors must be considered in advance. Secondly it suggests setting up qualification for a government grant of managers of private placement investment fund, and how to prevent them to breach the moral duties. Thirdly, unpublic recruitment way of private placement investment fund should be fallowed strictly, and the disclosure of message should be made respectly according to different kind of investors. Next, it analysis why we should set up restriction on the resale of the fund and what factors should be satisfied if the investors want to resale the fund. Finally, gives out my own opinions about how to improve the relief mechanisms of the investors.Part four discusses some other measures to protect the investors.In this part firstly discusses the inventors how to avoid meeting lost, then I suggest to set up the relevant trade self-discipline mechanism, which may help develop the Private placement investment fund in our country as well as protect the investors.