Private equity funds offer investors both the potential for high rewards (approaching 25 to 30 percent return on investments) as well as plenty of risk (poorly managed equity funds can literally lose all of your money). Learning how to find and manage these funds is critical if you are interested in private equity investing.

instructions
Shop around for equity funds that not only have performd well in the past but also invest in risks that you are comfortable with. Get real numbers, like the average rate of return for past five years, and examine past investment decisions.

Take the time to scan the market and talk to experts in the field before committing yourself. Private equity funds that invest in start-up companies or venture capital affairs are typically more risky than funds that deal with established companies.

Once you've selected a fund, write down a list of any questions you may still have, and get directed answers from a fund manager. Make sure you're comfortable.

Prepare yourself for long-term investing and understand the rules of the fund. Some long-term private equity funds make it very difficult to liquefy assets early. Some funds require that investors meet certain wealth criteria. For instance, you may need to prove that your net worth is $1.5 million to qualify for the ABC Fund.

Monitor your fund and respond to its ups and downs by adjusting the rest of your portfolio.