What should I check before investing in a private fund?

The Financial Supervisory Service advises checking, before investing in a private fund, whether the asset manager and distributor are regulated financial companies; the investor requirements, such as the minimum investment amount; the investment strategy and main investment targets; the investment managers' experience and past performance; whether and on what terms redemption is restricted; and the fee structure, including performance fees.

Also review the maturity and risk factors carefully in the key product description and the collective investment rules. Since funds are not principal-guaranteed products, be aware that a pitch for a 'principal-guaranteed, high-return private fund' is very likely to be illegal fundraising.