Why do the funds I invest in often explode? Obviously, according to the routine steps, it is still an explosion. I believe many people have encountered this situation. Therefore, Bian Xiao specially brought you the reasons for the frequent explosion of funds, hoping to help you.
What's wrong with frequent shorting of funds?
The short position of the fund means that the loss of the fund is very serious. Generally speaking, it may be that the securities invested by the fund manager have fallen sharply, or that the fund manager has added leverage, but after adding leverage, the stocks or bonds have developed in the opposite direction, so short positions have appeared.
Generally speaking, Public Offering of Fund will not explode, but the asset allocation ratio may exceed 65,438+000%, that is, the fund manager may conduct leveraged financing transactions through bond pledged repo. When the price of pledged bonds falls, only a part of the funds pledged by the fund manager is lost, which may be a great loss.
Public Offering of Fund has strict institutional leverage restrictions on investment: the leverage ratio of open-end funds (i.e. total assets/net assets of funds) shall not exceed 65,438+040%, that of fixed-term open-end funds shall not exceed 200% in the closed operation period and 65,438+040% in the open period.
In addition, private equity funds in China may break out, because the risks of private equity funds themselves are relatively large. When some equity private equity funds invest in unlisted companies, it means that private equity funds lose money, which leads to the fund's short position.
What are the reasons for short selling of money funds?
In the stock market, if investors carry out financing operations, the stock price will change, resulting in insufficient margin and short positions. However, in the fund market, the main reason for the short position of the money fund is that the money fund cannot meet the redemption requirements of investors in the market, which leads to the short position of the money fund.
The following two situations will lead to a large number of redemption of money funds:
1. If the asset allocation is unreasonable, the funds will be temporarily unable to be withdrawn. However, due to the past liquidity lessons, money fund managers usually arrange a large number of asset hedging and centralized redemption behaviors at the end of half a year or the second half.
2. Some money market funds have a high degree of negative deviation, and institutional investors have redeemed them in large quantities.
Therefore, investors should try to invest in funds with good fund performance and high historical management level when choosing money funds, which can reduce the probability of investors encountering short positions in money funds.
What is a fund explosion?
The short position of the fund, that is, the "forced liquidation" of the fund, refers to the situation that the user's interest in the investor's special deposit account is negative under certain circumstances.
Specifically, when the assets in the investor's credit account can't meet the legal standard, the securities company informs the investor that the additional margin is fruitless, and then implements compulsory liquidation, directly transfers, freezes, deducts the margin in the investor's account or sells the funds in his account, and uses the obtained funds to pay off the arrears.
Influence of fund explosion on investors
1, it will lose money. When the fund explodes, the equity in the investor's margin account is negative, indicating that the fund will lose money when it explodes.
2. There is no remedy. When the position is short, the system will force the liquidation, the fund can't cope with the redemption, and the investor needs to bear all the losses.
But in general, the probability of fund explosion is very small. When buying funds, investors should pay attention to the historical performance and operation of funds and avoid buying funds that may explode.
If the investment fund is currently in a loss state, but there is a rebound trend in the future, then investors can consider making up their positions appropriately and increasing their investment. This applies to fund products with excellent historical performance and good management. On the other hand, if investors don't want to take high risks, it is recommended to choose low-risk funds from the beginning.
So is it possible for the fund to lose negative money? If the fund does not operate well and continues to decline, it will be liquidated after meeting some conditions, so the probability of negative losses is very low and it is basically difficult to happen. According to relevant regulations, if the net asset value of the fund is less than 50 million yuan for 60 consecutive days, it can be liquidated.
When will the fund explode?
There will be short positions, often because the fund losses are too serious. Generally speaking, it may be because the risk control of the fund is too poor, so the fund fell badly; It is also possible that the fund manager added leverage, but after adding leverage, stocks or bonds developed in the opposite direction, thus triggering short positions.
Generally speaking, Public Offering of Fund in China will not explode. However, if the asset allocation ratio exceeds 100%, that is, the fund manager leverages through bond pledge repurchase, then when the price of pledged bonds falls and some funds pledged by the fund manager suffer losses, it may cause great losses and lead to short positions.
Public Offering of Fund has strict institutional leverage restrictions on investment: the leverage ratio of open-end funds should not exceed 140%. For fixed funds, the closed period shall not exceed 200%, and the open period shall not exceed 140%.
Compared with Public Offering of Fund, private equity funds in China are more likely to break out, because the investment risk of private equity funds is higher. Especially for some equity private equity funds, when the companies they invest in are not listed, it means that private equity funds are in a state of loss, which is easy to cause short positions.