whether in the U.S. stock market or A-share market, the word "retail investors" has a slightly derogatory meaning, because various statistical results show that retail investors have always been the object of "education" in the stock market, and "institutionalization" seems to have a rather tragic and ironic meaning.
according to the statistics of the federal reserve, in the past 6 years, American stocks have experienced the entry of pension funds in the 195s and 198s and the rise of mutual funds in the 198s. The market value of American stocks held by private investors has dropped from 9% to about 3%, while the proportion of institutional investors has increased from less than 1% to 6%.
At present, A shares are also in the process of "institutionalization".
According to the 218 Yearbook of Shanghai Stock Exchange, retail investors who hold 4% of the freely circulating market value of Shanghai Stock Exchange contributed 8% of the turnover in 217, but "hard work" failed to get rich, and the profit only accounted for 8% of all investors. On the other hand, professional institutions contributed 14.8% of the annual transaction volume, accounting for 32.3% of the profits.
even when the market is bad, institutional investors are in an absolute dominant position. Recently, experts and scholars from Shanghai Stock Exchange, Tsinghua University and Columbia University Business School jointly published a paper to study the transaction data and earnings performance of more than 53 million accounts in Shanghai Stock Exchange from January 216 to June 219. The results show that the Shanghai Composite Index fell by 15.83% in the same period. Both small and large companies were losing money, but institutional investors realized profits.
In the last year, the institutional characteristics of A-shares were also obvious. In July 22, the issuance scale of new funds reached a record high, and more and more individual investors chose to enter the market indirectly through funds.
In my opinion, "institutionalization" should be a neutral word, which does not mean ridicule for individual investors or praise for professional investors (after all, more than 9% of funds in the US stock market cannot beat the index). Professional institutions have more researchers, research resources, research time and rich experience, while retail investors invest more in their spare time under the condition of information disadvantage, so it is natural that it is difficult to beat professionals. The "institutionalization" of the stock market is only the embodiment of social professional division of labor in the investment field, and there are specialties in the industry, that's all. Newton, the founder of classical physics, lost a lot when investing; Warren Buffett, who started from 1 yuan, can't be a physicist. The "institutionalization" of A shares is the general trend, but the excess returns of institutions will become more and more difficult to obtain.
in the past 1 years, due to the immature structure of domestic investors, the partial A-share and equity-based funds as a whole have created certain excess returns for investors, and the return rate of a few outstanding fund managers can reach 1%-15% annually.
However, in the highly "institutionalized" stock market, the excess returns brought by the investor structure disappear, and only a few fund managers can obtain the excess returns.
According to the statistics of Changying Investment, in 197, there were 355 mutual funds in the United States. After 36 years, only 24 funds beat the S&P 5, accounting for only 6.8%.
industry is good at diligence, but poor at play; What is done is thought, but it is destroyed. No matter in which industry, when the overall environment of the industry is good, it is difficult to distinguish the operating gap between different enterprises. But when the market environment changes, only a few enterprises can win. Hengrui Pharma, when domestic pharmaceutical companies are still in the stage of generic drugs, and most pharmaceutical companies rely on generic drugs and auxiliary drugs to earn high profits, vigorously promotes the strategy of new drug research and development, and has the most R&D pipelines with the largest layout of new drugs and the widest indications in China. When the profits of many generic pharmaceutical companies were halved because of centralized mining, Hengrui still maintained a medium-high speed growth and became a minority of domestic pharmaceutical companies. Huawei started from the production of switches. While most enterprises in the industry still enjoy the business model of outsourcing core components for assembly, Huawei has been vigorously researching and developing core components and has its own core competitiveness in many fields, becoming a minority in the domestic and even communication industries. At present, domestic A-shares are still in a period when institutions can easily beat the index, but in the long run, "institutionalization" will make it more and more difficult for professional institutions to obtain excess returns, among which a few fund managers with long-term excellent performance and different market styles are more likely to obtain excess returns. For individual investors, choosing these fund managers and funds is a good way to adapt to the future trend of "institutionalization".