Can I buy a fund with a high proportion of institutions?
The proportion of institutional investment has advantages and disadvantages. Let's first look at the advantages of a large proportion of institutional investors:
1, with high performance.
Under normal circumstances, the performance of funds with relatively high institutions will be relatively high, very stable, and the retreat is very small.
2. Fund managers are relatively excellent.
Institutions will inevitably inspect fund managers before investing, and only excellent fund managers can enter their eyes. For example, Zhang Qinghua, the fund manager, is an excellent fund manager. The secondary bond fund managed by E Fund won the championship in 20 17. The funds it manages have won the Golden Bull Award and the Star Fund Award for many times.
3. The risk is controllable
Institutional investors are naturally cautious in investing. When investing, they will always pay attention to the funds they invest in. If they find that the funds they invest in have problems. For example, the net value of the fund suddenly fluctuates greatly, and the stocks with large positions and heavy positions have also undergone major changes. At this time, they usually go to the corresponding fund manager to understand the situation. Then make your own judgment, and when you find that the follow-up risks are indeed relatively large, you will redeem them all.
4. The share is relatively stable.
Generally, the share of institutional investors' investment rarely changes, so in the long run, this fund buys and sells the changed share of retail investors. Institutions account for a large proportion, and retail investors account for a small proportion. Even if retail investors redeem it, the share of the institution will not have any impact. In this way, the fund share will be relatively stable and there will be no net worth roller coaster.
After talking about the advantages of institutional investment, let's talk about his shortcomings. The disadvantage of institutional investment is that if the fund falls sharply, it will lead to institutional redemption and the net value of the fund will fall sharply. Individual investors are also implicated.
Therefore, it is necessary to judge whether you can buy a fund with a high proportion of institutions according to the actual situation. Generally speaking, the proportion of institutions is 30%-80%, and it is better to be careful if it is greater than 90%. More than 90% of funds have high redemption pressure and liquidation risk, so it is best to take a middle value for the proportion of institutions.
Of course, the proportion of institutions is not the only indicator of fund selection. Investors should broaden their horizons in fund selection, and make a comprehensive analysis based on the historical performance of the fund, the basic situation of the fund manager, the risk indicators of the fund and other factors. Finally, remind investors that the fund is risky and investment needs to be cautious.