Why does the fund explode _ The influence of the fund explosion on the market

Will the fund explosion have a certain impact on the market? Why did the fund explode? The following is why the fund compiled by Bian Xiao exploded, hoping to help you to some extent.

Why did the fund explode?

The short position of a fund usually refers to the situation that the net value of the fund suddenly drops to zero or close to zero, resulting in the fund being unable to continue its normal operation or being forced to close its position. There are many possible reasons for the explosion of funds, including the following aspects:

Leveraged trading risk: Some funds use leveraged trading strategy to increase the investment scale by borrowing funds in order to obtain higher returns. However, if the market reverses or the investment strategy is wrong, leveraged trading will amplify the losses and lead to short positions of funds.

Major investment mistakes: fund managers make serious mistakes in investment decisions, such as misjudging market prospects and blindly pursuing high returns, which leads to the sharp depreciation of investment varieties held by funds, which in turn leads to fund positions.

Bad market environment: Unpredictable market changes such as economic recession, financial storm or major events will have a great impact on fund investment, leading to a sharp decline in portfolio value and exposure of funds.

The impact of fund explosion on the market may be serious, as shown below:

Investors' confidence is frustrated: short positions of funds will cause market panic, and investors may lose confidence in funds and the whole market, which will lead to more selling behaviors and further market decline.

The market turmoil has intensified: fund positions are often accompanied by large-scale selling pressure, which may lead to an imbalance between supply and demand in the market, a sharp drop in the prices of financial assets such as stocks and bonds, and the risk of violent fluctuations or even collapse in the market.

Banks and brokers are under pressure: if the short positions of funds lead to a large number of debt defaults or investment institutions fail to perform their duties, banks and brokers in the financial system may face serious financial risks, need to dispose of collateral or divest assets, and even need government assistance.

Therefore, fund short position is a serious risk event, which may have a great impact on the whole market and financial system. Regulators and investors should pay close attention to fund operation, strengthen risk management and supervision measures, and reduce the potential risk of fund explosion.

What will happen if the capital account explodes?

In the fund market, the fund account will not explode. Short positions mean that investors lose money in the course of trading. Under normal circumstances, under the daily liquidation system and the compulsory liquidation system, the short position of the capital account will not happen. Under normal circumstances, there will be short positions in margin trading, and there is no need to pay margin for fund trading.

Once there is a loss in the capital account, there is not enough money in the investor's account to make up for the loss, and there will be liquidation. In other words, there is generally no funds in the account, and half of the margin loss will be forced to close the position. The main reason for the short position is that the position is too heavy.

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.

Under what circumstances will you lose money when buying a fund?

The reason why the fund will lose money is because the investment target has fallen, that is to say, the investment direction is not good, and the investment direction of the fund is suitable for the type of fund. It should be noted that different fund types represent different risks and returns.

Like money funds or pure debt funds with relatively low risk, these two funds do not invest in the stock market, so the risk is relatively small and it is not easy to lose money. However, like some high-risk fund types, such as stock funds, hybrid funds and index funds, the fluctuation of funds is relatively large and the risks are relatively large.

When the fund market is bad, foundations are more likely to lose money. Take stock funds as an example: stock funds mainly invest in stocks, so when heavy stocks fall, the funds will also fall.

Therefore, when investing in stock funds, we need to pay attention to the fund's heavy stocks. If you are not optimistic about the fund's heavy stocks, you must redeem the fund in time to avoid serious losses.

The infinite rise in share prices shows that

1, infinite rise to analyze is that if the stock has been high for a period of time, infinite rise will be considered as weak rise, but if it has been sideways for a long time, it will suddenly rise indefinitely and the increase is too large (personally, it is considered too large if it is above 7%), which often indicates that the market outlook is expected to strengthen.

2. The increase in volume is generally accompanied by the sudden speculation of favorable stocks, large funds or hot money, and there is still a certain increase in the market outlook, but not much (relatively speaking).

3. If there is no daily limit, it means that the funds inside have gained some chips through the previous sideways, or after the previous dishwashing, the recognition of the shares to be increased is high, so there is little difference on the way up. This stock is often a quasi-dark horse (whether it is a dark horse or not needs other verification).

4. Unlimited rise: it is the concept relative to the previous volume. For example, some time ago, the average daily turnover of the market was 1000 billion, but in recent days, the market has continued to rise, with a turnover of only 50 billion. This is the so-called infinite increase, which does not mean that the turnover has not increased.

5. In the general relationship between volume and price, the rise or fall of trading volume is accompanied by the rise and fall of stock price, but the infinite rise breaks through this law.