100% agree one shall know what to invest into.

I do wonder why people want to go in and out of such fund so quickly. I mean, it is high risk because it funds private businesses, those with a higher risk level for the reasons you given, because - for instance - a bank would not have given money. When going for high risk funds, I would assume: 1) go in for the longer run, 2) enter with only a 'little' part of the investment portfolio not needed for the short/mid term. Since most of us already learned/know, going in and out too quickly without being an expert trader, usually means: Leaving all the profits to others.

I must admit, I learned this myself the hard way! Thought I was a trader, based on a combination of charts and fundamentals and a great gut feeling plus a super logical and rational mind. But then, I learned my emotions are part of the equation as well, as greed was. For so many, this is the same. While the hobby traders sell when prices go down, institutionals and other professionals usually buy. Unless it wasn't a sound investment at all, but then again, institutionals and professionals wouldn't have invested in the first place 😉

Anyways, enough about me. I agree with you and join your call: "Be careful in what you invest in. Be extra careful when promised returns are higher than what is common."