What do you mean by shorting funds? Why did the fund's short position explode? I believe many people don't know much about it, so Bian Xiao specially sorted out what short funds are for everyone, hoping to help everyone to some extent.
What is a short fund?
Short selling of funds, also known as short selling, short selling (in Hong Kong) and short selling (in Singapore and Malaysia), is an investment term in stock and futures trading, and also an operation mode in stock and futures markets. In contrast to bulls, in theory, it is to borrow goods to sell first and then buy them back. Short selling refers to selling the stocks at the current price in anticipation of a downward trend in the market in the future, and then buying them after the market falls, so as to obtain the difference profit. Its trading behavior is characterized by selling first and then buying.
Short-selling funds generally refer to short-selling transactions of funds in the market (only short-selling with margin financing and securities lending as the target). Short selling refers to an operation mode in which investors borrow funds from securities companies to sell in anticipation of the future decline of funds, and then buy back securities companies after the fund falls. At present, there are not so many sources of securities in the A-share market, and many subjects cannot make short trades.
Off-exchange funds can't be short, only long. Short selling requires opening a margin trading account. The opening conditions are: the average daily assets in the first 20 trading days are not less than 500,000, the risk tolerance is C4 and above, and the trading experience in the securities company where the account is opened is not less than 6 months.
What does the short position of the fund mean?
Short position refers to the situation that the customer's rights and interests in the investor's margin account are negative under some special circumstances. In most cases, the biggest reason for short positions is related to improper fund management. Moreover, stock financing and securities lending, futures, options and so on will only explode. It should be noted that although the fund account will not explode, the loss will be uncontrollable.
What will happen if the fund explodes?
1. For fund managers, the exposure of private equity funds may damage their reputation, dampen investor confidence, and may be held accountable by the regulatory authorities.
2. For investors, the risk exposure of private equity funds will directly lead to the loss of their investment principal, and even face the risk of total loss in extreme cases.
3. For the whole market, the exposure of private equity funds may lead to negative effects such as tight market liquidity, stock price crash, and even lead to systemic risks.
How can investment funds make money?
1 Select the fixed investment target: The foundation for the fund to make money by fixed investment is based on a good fund. For us, choosing a good fund product is the most important thing. We need to screen and compare the historical performance, maximum retracement, position distribution, investment style, fund manager and other information of the fund to ensure that there is no problem with the fund.
2 determine the fixed investment cycle: for the fixed investment cycle, there are often daily fixed investment, weekly fixed investment, monthly fixed investment and irregular fixed investment. According to statistics, no matter how the market changes, the yield curves of daily fixed investment, weekly fixed investment and monthly fixed investment are almost similar, with little difference in income, and there will be no situation that the higher the frequency of fixed investment, the higher the income. Among them, the monthly fixed investment time is very suitable for the second or third day after the salary is paid, because it can help us to save forcibly and is suitable for friends who have weak self-control and like to spend.
Fixed-time investment refers to investors who choose to buy in the falling market instead of setting a fixed time, which is more suitable for investors who have a better understanding of the fund, have certain research, can pay attention to its market every day, and have certain time and energy.
3 Fixed investment amount: Assuming that the fixed investment period has been determined, the fixed investment amount must be fixed or not. The amount is easy to understand, that is, every investment is the same amount. If it is not fixed, you can increase the investment ratio when the market goes down and reduce the investment amount when the market goes up.
4 save the cost of fixed investment: if we can save more costs in the investment process, it is equivalent to an increase in our rate of return. Here, the transaction costs of the fund are reduced as much as possible, such as redemption fees, sales service fees, and trading commissions of the on-site funds. In addition, the correct choice of fund dividend method is also a skill to make our long-term income rise. Cash dividends can make us feel safe, which not only makes the floating surplus become real money, but also saves our redemption fee. If it is dividend reinvestment, then we can increase the fund share.
Although the dividend of the fund will be ex-dividend, that is, putting the money in the left pocket in the right pocket will not increase our income immediately, but the dividend will be made up after ex-dividend. As long as dividends are stable for a long time, the price drop caused by ex-dividend will be compensated, so it is a long-term positive for us.
5 Take profit in time: It is necessary to know that although the fixed investment of the fund is a long-term investment, there is also a time limit. We must learn to make a profit in the right position. Generally speaking, bull market and bear market are the best nodes for a long investment cycle, especially the China stock market is still in a short-term state, so it is necessary to find the right time to take profits when the bull market comes.
Allocation of stock investment measures
At present, China open-end fund market has launched and plans to launch flexible asset allocation funds, mainly launched by several Sino-foreign joint venture fund management companies, such as Baokang Flexible Allocation Sub-fund under Baokang Series Fund of Huabao Industrial Fund Management Company, Desheng Steady Securities Investment Fund of Guolian 'an Fund Management Company and Haifutong Selected Securities Investment Fund of Haifutong Fund Management Company.
Investing in this kind of fund, the key point is to judge what factors the fund adjusts its assets, which is a choice of investment philosophy and style. For example, "Baokang Flexible Allocation Sub-fund" is the first "timing fund" in China, focusing on "timing" selection and "two-dimensional management of positions and time" according to the characteristics of systematic risks and fluctuations in China stock market. Its asset allocation ratio ranges from 5% to 75%, and bonds range from 20% to 90%, keeping more than 5% of cash; The basic investment portfolio of Desheng Steady Securities Investment Fund is 20% ~ 7 1% of stocks, 25% ~ 75% of bonds and 5% ~ 10% of cash. Through active investment strategy and fruitful fundamental analysis, the best combination of risk and return can be realized. "Haifutong Select Securities Investment Fund" mainly adopts a "top-down" multi-factor analysis and decision-making system in asset allocation, and adjusts the investment portfolio of the fund at any time according to changes in market conditions and asset allocation strategies.