What are the risks of investing money in private equity firms to earn interest?

The biggest risk is that these investment companies abscond with money.

Basically, if the interest rate is high, it is a Ponzi scheme.

In the past few months, by giving you high interest rates, you have attracted a large number of people to invest.

Next, according to the total amount received by the company every month, the interest that needs to be paid every month is removed, if there is any surplus. Then the company will continue to run. Once you find that you can't pay the interest, you will donate and abscond.

In the final analysis: you covet his high interest rate, and he covets your principal.