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Why can huge redemption bring about an increase in fund income?
The market opportunities brought by huge redemption can increase the fund's income.

The fund market is unpredictable at any time, and huge redemption is also a common phenomenon. Keen fund managers can take advantage of this market opportunity to increase the fund's income. First of all, fund managers can use redeemed assets to invest in low-valued stocks or bonds with good fundamentals, and take advantage of short-term market pressure to obtain excess returns.

Secondly, the redemption of many small and medium-sized investors can lead to the decline in the price of heavy stocks, which gives fund managers the opportunity to further increase their positions, choose stocks with strong growth or dividend potential, and get the maximum income as much as possible.

In addition, fund managers can also use the redemption of assets to balance the stock and debt positions in the portfolio and reduce the volatility and risk level of the portfolio. This operation can be beneficial to the overall performance of the fund and further increase the income.

In short, huge redemption may be a risk, but it is also a market opportunity for keen fund managers. Through flexible operation and superb investment skills, fund managers can use market fluctuations to obtain excess returns and create asset appreciation.