What are the risks of investing in private funds?

Most public-fund-level rules, such as diversification and disclosure requirements, do not apply to private funds, so they may invest heavily in particular assets, and leverage such as borrowing can lead to larger losses than expected.

If a fund invests in illiquid assets, redemption may be restricted or take a long time, and performance fees can reduce your actual return. Above all, remember that it is a performance-based product with no principal guarantee.