So what are the characteristics of institutional investors' preferred funds?
As an institutional investor, the choice of investment targets will pay more attention to safety and the balance between risk and return. Therefore, the generally selected heavyweight stocks have long-term stable performance and strong risk control ability, and it is unlikely that there will be too much retracement. Therefore, if there is a target of heavy positions of investment institutions, there will be a high probability of long-term stable performance. Institutional investors will pay more attention to the stability of investment, including the stability of fund managers. The purpose is to ensure the stability of fund performance.
Under normal circumstances, institutional investors will be relatively stable after choosing the investment target, but it does not mean doing nothing. Institutional investors will always pay attention to the funds they hold after investing. If the net value fluctuates greatly or the fund position fluctuates greatly, they will also consider redeeming some funds. Redemption by institutional investors has a greater impact on the fund. Therefore, fund companies will try their best to maintain the stability of the fund, invest more carefully and try their best to control the return of the fund.
Another feature of funds held by institutional investors is that the fund share is relatively stable. Different from ordinary individual investors, institutional investors like to choose timing, and intraday trading will gain benefits. Institutional investors generally try to reduce their timing and maintain long-term and stable investment. Because the share ratio is relatively high, it can maintain the stability of the fund share to a certain extent.