Private Equity – Is it good option over direct Equity?

POSTED BY Santhosh_S ON January 26, 2014 9:56 am COMMENTS (2)

I recently heard from one investment *agent* that it is better to invest in Private Equity rather than direct Equity share. He said the risk is almost same (I can opt for Private Equity from two or three company instead of going for single private equity). He shown newspaper reference and booklet which shown way over 12-18% return, but the min amount for investment is over 20-30L (I can pay in 5-6 installment).

Please help me if Private Equity is good option (considering it from good asset backed company like Pramul in Real esate…)? What would be case of my investment if the company go bankrupt (will I get money like Bond/Debenture)? If possible pls name few good Private Equity?

2 replies on this article “Private Equity – Is it good option over direct Equity?”

  1. rahul123 says:

    Private equity may give you much more than 12-18%, but there are following risks.

    1. You may loose all your money.
    2. Longer wait period.
    3. Lack of transparency.

    It is for sophisticated investors and not meant for everybody.

    Thanks,
    Rahul

  2. ashalanshu says:

    Dear Santosh, can you afford to lose all the money if the so called private Eq. placement deal goes in drain?

    Thanks

    Ashal

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.