Do OTC funds have a daily limit? Do OTC funds have a daily limit?

How should we understand the daily limit mechanism of OTC funds? For many people, perhaps OTC funds are absolutely It is not a very familiar term, so the editor specially compiled for everyone whether there is a daily limit for OTC funds. I hope you like it.

Does OTC funds have a daily limit?

Funding is a method of pooled securities investment, which generally involves profit sharing and risk sharing. It is concentrated through the issuance of fund units. Investors' funds are kept by the fund custodian, and the fund manager manages and uses the funds to invest in foreign exchange, stocks, bonds, currencies and other financial instruments to obtain investment income and capital appreciation. According to relevant common sense, on-exchange funds have a price limit rule, and the price limit is 10%, but OTC funds do not have a price limit rule.

What is an index fund?

An index fund selects an index as the imitation object and purchases all or part of the securities in the securities market included in the index according to the standards of the index. The aim is to achieve the same level of returns as the index.

Common index funds can be simply divided into over-the-counter funds (OTC funds) and exchange-traded funds (OTC funds) based on purchase channels.

Other exchange-traded funds are relatively simple to trade. We can go to the APP to purchase. There are many funds available for redemption on platforms such as Tiantian Fund Network, Alipay, and Ant. Apply and redeem exchange-traded funds on different websites, but the channels are different, and the funds you apply for and redeem are the same. So just choose one with low cost and good service.

What will happen after the fund reaches its daily limit?

Funds also have price limits. For general funds, the price limit is 10%, while for some GEM-related funds, the price limit is 10%. For a fund, its rise and fall is limited to 20%. So, should investors choose to continue to hold the fund after the fund's daily limit, or choose to take profits?

After the fund's daily limit, if the fund's performance is relatively low If the fund can continue to rise, and the current premium rate is low, investors can consider continuing to hold it, or of course, they can choose to reduce their positions at a high level.

If the fund performance is poor and the fund cannot continue to rise, and the premium rate is high, investors can consider selling the fund in their hands to avoid losses caused by the fund's later decline.

In addition, investors can adjust their investment strategies based on the trend of the fund’s constituent stocks. If its constituent stocks appear to be peaking, investors can choose to sell when the fund reaches its daily limit. , on the contrary, if it is in the early stages of rising, investors can consider continuing to hold the fund.

Characteristics of the GEM Index

The characteristics of the GEM Index mainly include the following aspects:

1. High growth: The GEM market is a Chinese stock market One of the fastest growing sectors in the market, including many high-tech, high-growth companies. Therefore, the growth rate of the GEM index is usually larger.

2. High risk: Stocks on the GEM market generally have high risks, including small market value, poor liquidity, unstable profitability, etc. Therefore, investing in GEM stocks requires a higher risk tolerance.

3. Special industry structure: The industry structure of the GEM market is relatively concentrated, mainly covering high technology, new energy, new materials and other fields. The development of these industries is greatly affected by policy support and market demand.

What are the ways to deal with the sharp fall in funds?

1. The profitable funds should reduce their positions first. The actual situation is not as bad as we imagined. Although the market fell sharply, it still rose. fund. For example, technology, technology rose sharply yesterday, and the technology fund held by a friend happened to have a profit of about 50%. At this time, the technology fund can be reduced first. The reduced position...

2. Buy some funds with small drawdowns to avoid risks. Which fund is more stable at this time? It must be fixed income + and bond funds. Although the return is only 5%-10%

3. Loss is an important lesson in investment, and you need to learn to face it with the correct mentality.

Indeed, everyone likes to make money, and no one likes to lose money. Especially when there is a big retracement, everyone will feel tight in the chest and "blue skinny mushrooms". The core reason behind this is human nature's "loss aversion", that is, the pain caused by a 20% retracement far exceeds the happiness brought by a 20% gain. But the fact that needs to be recognized is that losses in investment are inevitable, just like winter and night every day. Therefore, "Don't come here at the peak, and don't turn away at the trough."