What is a new fund? Perhaps many people need to know a certain degree of fund knowledge before contacting the fund market. Therefore, Bian Xiao specially sorted out what is the new fund explosion for everyone, hoping to help those in need.
What is the explosion of a new fund?
Playing new fund is a misleading term.
Playing a new fund is also called playing a new stock fund. Don't be confused by this word.
Therefore, the word "innovation" cannot be separated from the sentence. If we put the word "innovation" and the word "fund" together, we will go astray. You will think that this fund is a newly listed fund, similar to the newly listed reits fund and the dual-creation fund, which is not the case at all. On the contrary, many of these funds are established funds, which is the first.
Why is it called new?
This "new" is "new shares" and "innovation" is "playing new shares". We know that individual securities accounts can play new shares, but the conditions are higher and the winning rate is much lower. For institutions, such as listed funds, they can also issue new shares. With their strong financial resources, the winning rate is much higher. These fund managers will use part of the funds invested by investors to play new shares. If they play new shares, it will bring rich profits to the whole fund, and the profits will naturally increase. So these fund companies are called new funds, or new stock funds!
Selection skills of playing a new fund
1, the ratio of the amount of new funds that the Fund can participate in to the assets of the Fund. 2. At the same time, pay attention to the performance management ability of the fund. On the one hand, most fund products will not be wholly-owned, so other stocks will also determine their excellent performance; On the other hand, there is a possibility that new shares will break after listing. Even if the new shares are not broken, the trend between them is also very different. Whether you can choose real high-quality new shares depends on the investment and research ability of the fund. 3. Pay attention to the announcement of new shares and the winning fund. Whether the fund is won or not depends on luck to some extent. What fund investors can do is to refer to the announcements issued during the IPO period, choose varieties with a higher proportion of allocated funds to invest, and share the proceeds of IPO to a greater extent.
Matters needing attention in purchasing funds
Evaluate yourself.
Evaluate your own risk, and confirm whether your risk preference is steady, conservative or enterprising according to your own income and current financial situation.
Choose the right fund
Choose the right fund category according to your risk preference. Equity funds have the highest risk, and now the minimum shareholding ratio of new issuance is not less than 80%. Followed by mixed funds, bond funds and money funds. Of course, the higher the risk, the higher the rate of return. The annualized rate of return of general money funds is around 5%, bond funds are around 8%, mixed funds are around 10%, and stock funds are above 15%.
Choose the right fund company
Choose according to the past performance of the fund, at least in the middle. At the same time, look at the length of time and historical performance of fund managers.
Find the fund manager
The trading qualification, stock selection concept and stability of fund managers will all affect the performance of funds. It is suggested to inquire about the basic information and qualifications of fund managers on the websites of fund companies first, and learn more about the style and past performance of fund managers.
Understand the risk coefficient
Risk coefficient is an index to evaluate fund risk, which is usually expressed by standard deviation, beta coefficient and Sharp coefficient. Beginners only need to master the following principles: the smaller the standard deviation, the smaller the risk of fluctuation; Beta coefficient is less than 1, the smaller the risk; The higher the Sharp coefficient, the better. The higher the index, the higher the fund income after considering risk factors, and the more favorable it is for investors.
Read the fund documents carefully.
Understand the fund's investment philosophy, investment direction, fund heavy position and performance benchmark. Understand the expenses of fund subscription, redemption, custody and management.
Consider the opportunity to buy
Generally, they buy on dips and advocate long-term investment. Those bought before three o'clock shall be subject to yesterday's net value, and those bought after three o'clock and before three o'clock the next day shall be subject to the net value of the day of purchase.
Will the fund fall when the stock market falls?
Not necessarily, when the stock market falls, the fund does not necessarily fall with the stock market. When the stock market falls, the fund may not necessarily follow the stock market decline for the following reasons:
1. Different types of funds are also affected by the stock market decline.
We all know that there are many kinds of funds, which can be divided into money funds, stock funds, bond funds and mixed funds according to the different investment targets. Different types of funds are affected by the stock market to different degrees, among which stock funds, LOF funds, index funds, partial stock mixed funds and linked funds are the most affected by the stock market. Bond funds and money funds are relatively less affected by the stock market.
Stock funds are directly influenced by the stock market and have a positive correlation with the changes in the stock market, while bond funds and monetary funds may be indirectly influenced by the stock market, which may be positive or negative. For example, when the stock market is in a bear market, people may not want to invest money in the stock market, but prefer to invest in financial products such as bonds, so bond funds may rise when the stock market falls.
2. the stock market fell. Not all industries have fallen.
After the stock market index falls, it does not mean that all stocks will fall. It just means that most stocks may be in a state of decline, and the fund is a basket of stocks, and some stocks invested by the fund may not fall.
3. Not all index funds aim at the market index.
There are many kinds of underlying indexes of index funds, not all of which are aimed at the market index, so after the market index falls, index funds may not necessarily fall. The underlying indexes of index funds can be roughly divided into two types, broad-based index and narrow-based index, among which narrow-based index is also called industry index.
Broad-based index mainly includes SSE 50 index, CSI 300 index, CSI 500 index, GEM index, dividend index, Hang Seng index, NASDAQ 100 index and S&P 500 index.
The narrow base index mainly includes medicine, liquor, military industry, securities, banks and real estate.
How to recover 40% of the fund losses?
When the fund loses 40%, it is necessary to analyze whether the fund has a future and whether it is a loss caused by the fund itself. If it is a loss caused by the fund itself, stop adding positions, don't think about paying back the capital in this fund, and need to change to an excellent fund.
Then, if it is not the fund's own reason, it is necessary to analyze whether the fund has a rebound trend and buy when the fund falls, so that you can buy more shares at the same price, just saying that adding positions will increase the risk of the fund, so be careful when adding positions.