There are two situations in which funds are purchased by themselves. One is that fund companies buy and hold their own funds, and the other is that fund managers buy funds with their own money. So is this kind of fund self-purchase behavior good or bad?

Is it good or bad for the fund to buy itself?

In most cases, it is good for investors to buy funds by themselves.

1 the first type of fund company buys itself, which usually happens when the stock market is not good and the overall decline. In the short term, it is a last resort for fund companies to buy from themselves, but in the long run, the market at this time is in a relatively bottom environment. If you buy at this time and wait for the market to pick up, these "cheap chips" will be profitable in the future.

The second kind of fund managers buy from themselves, usually with investors, sincere and more trustworthy. And fund managers can't sell their own funds within a year. Especially in the initial public offering, if the fund manager subscribes, he will publicize and explain how many assets he holds, which is also to publicize the fund and enhance investor confidence.

However, both fund companies and fund managers generally advertise and even announce when they buy, but they often don't make special announcements when they sell, and they often know that they have been sold when the annual report is disclosed.

The annual report usually shows the funds held by senior managers, investment researchers and fund managers. If you look at the quarterly data, you can see how fund managers use their inherent funds to invest in funds.

In fact, self-purchasing funds is nothing new. Earlier, some media made statistics on the active stock fund managers whose management scale exceeded 100 billion. Among them, 95 fund managers of 168 bought their own funds, accounting for 56%. In other words, more than half of the tens of billions of fund managers have bought their own funds. As for the rest of the fund managers who have not purchased their own funds, it is mainly because of their limited economic ability, and the risk preferences of the funds they manage are different from their own.

I would like to remind everyone here that although the self-purchased funds have given us market confidence to a certain extent, the interests of Manager Jin are linked to the products he manages, which helps him to devote all his energy to researching the market and managing products, but this does not mean that such funds are all good. Choosing funds according to this idea is just a reference way. The fund can have a good income, which ultimately has a lot to do with the ability of the fund manager. Never blindly copy the operation of buying funds.