Is it possible for global funds to break out? What will happen if this sounds serious? The following is the possibility of global fund explosion brought by Bian Xiao. I hope you like it.
Is it possible for global funds to break out?
Short position of fund means that the fund can't meet the redemption demand of investors because of the sharp shrinkage of fund assets or large-scale redemption, and may even have an impact on the whole market. The following are some reasons that may lead to short selling of funds:
Market crash: when the market falls sharply, the value of assets held by the fund will be seriously affected. If the fund is highly concentrated on the investment products that are greatly affected, it may lead to the risk of short positions.
Leveraged investment: Some funds have adopted a leveraged investment strategy, borrowing funds for larger-scale investment. If the market is upside down and the stock price falls sharply, the borrowed funds will increase the scale of losses, which will lead to the risk of short positions.
Large redemption: when investors redeem a large number of fund shares, fund management companies may need to quickly realize cash to meet the redemption demand. If the assets held by the fund cannot be realized quickly or the market liquidity is insufficient, it may lead to short positions in the fund.
The possibility of short positions of global funds exists, especially in the case of serious deterioration of the global economic situation, violent fluctuations in financial markets or a large-scale redemption tide. The explosion of funds may have the following effects:
Investor losses: investors may face huge losses, especially those who hold the affected funds.
Market shock: fund explosion may trigger market panic, aggravate the downward pressure on the overall market, and may have a chain reaction to other funds and investors.
Trust crisis: the fund explosion may cause a major blow to investors' confidence, make them doubt the whole fund industry and lead to the withdrawal of funds.
In order to reduce the risk of fund explosion, investors should carefully choose fund products, understand their investment strategies, risk control measures and historical performance, and at the same time conduct appropriate risk management and asset allocation. In addition, regulators and fund management companies also need to strengthen risk management and monitoring to ensure the protection of investors' interests and the stable operation of the market.
Will the fund account explode?
Theoretically, it is possible for a fund to break out, but the probability is not great. Because the foundation has a series of risk control measures, such as holding a single stock does not exceed 5% of the total market value of the position. If the fund bursts, it means that the risk control is too bad. The situation of private equity funds is relatively large. I have seen that private placement has no risk control measures at all, and Man Cang can hold a stock.
Why did the fund explode?
The short position of the fund means that the loss of the fund is very serious. Generally speaking, it may be that the securities invested by the fund manager have fallen sharply, or that the fund manager has added leverage, but after adding leverage, the stocks or bonds have developed in the opposite direction, so short positions have appeared.
Generally speaking, Public Offering of Fund will not explode, but the asset allocation ratio may exceed 65,438+000%, that is, the fund manager may conduct leveraged financing transactions through bond pledged repo. When the price of pledged bonds falls, only a part of the funds pledged by the fund manager is lost, which may be a great loss.
Public Offering of Fund has strict institutional leverage restrictions on investment: the leverage ratio of open-end funds (i.e. total assets/net assets of funds) shall not exceed 65,438+040%, that of fixed-term open-end funds shall not exceed 200% in the closed operation period and 65,438+040% in the open period.
In addition, private equity funds in China may break out, because the risks of private equity funds themselves are relatively large. When some equity private equity funds invest in unlisted companies, it means that private equity funds lose money, which leads to the fund's short position.
What fund to buy has a relatively stable income?
Generally speaking, the income of money funds and pure debt funds is relatively stable.
The main investment directions of the money fund are cash, bank deposits with a maturity of less than 1 year (including 1 year), bond repurchase, central bank bills, interbank deposit certificates, bonds with a remaining maturity of less than 397 days (including 397 days), debt financing instruments of non-financial enterprises, asset-backed securities, etc. Therefore, from the investment direction, there is basically no investment risk, which is relatively high.
Therefore, the fluctuation of the money fund is relatively small and the income is relatively stable. When choosing a money fund, you can check the past income. Most cases are positive returns, but the returns will not be very high.
Pure debt funds invest 100% in bonds, and the investment direction of bonds is less risky, so the income is relatively stable, but compared with money funds, the fluctuation is slightly larger, but overall it is relatively stable. Money funds and pure debt funds have never invested in the stock market, so the risk is relatively small and the income is relatively stable.
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.