Many new funds will attract investors' attention as soon as they are issued, especially those issued by head fund companies and managed by star fund managers. At the beginning of the issuance, there will be a rush to buy, and even many new funds have to end the fundraising period ahead of schedule because they are too attractive to the fund in a short time.
The star fund manager effect is widespread in the domestic fund market. Is that new fund worth chasing? Is the income of the new fund the same as that of the star fund manager at the helm? These conditions are unknown.
In addition to considering whether to subscribe for new funds during the issuance period from the perspective of fund managers and fund companies, we also need to understand several characteristics of new funds.
Closing period
The new fund raises funds during the issuance period and enters the closed period after the fundraising is over. The closure period is generally 1 to 3 months. You can't apply for redemption during this period, which means you can't move a sum of money within three months.
Unlike we buy old funds, we can redeem them when we need money, which is a waste for the use cost and liquidity of funds.
Open period
In addition, when the new fund is established, there will be a opening period. At this stage, the fund manager will use the raised funds to purchase investment targets such as stocks and bonds according to the requirements of the fund prospectus to form his own fund portfolio. This process is opening positions. During the opening period of this process, no one can judge how the market is.
If the market is at a high level during this period and there is no ideal investment target, but the fund manager still wants to buy stocks, he will buy them at a high market level. If the market is just right during this period, but the fund manager is slow to open a position and the position is relatively low, then he will miss this wave of rising market, which is also a 30% rise. Under the same conditions, 80% of the stock positions and 40% of the stock positions will differ by half.
No historical data.
The new fund has no historical data for reference and comparison. The only thing we can see is the past performance of fund managers to give a basic judgment. The same fund is managed by the fund manager, and the income of each fund varies greatly. You can't judge that the future income is high because of the previous high income, nor can you judge that a fund he manages has high income because of the past high income.
Stagflation period
The data shows that it often takes about half a year for a new fund to enter a good situation. The performance of new funds in the early stage is often relatively dull.
Because of the low position in the initial stage of opening positions, the foundation experienced a period of stagflation, that is to say, it rose and fell at the same time. Has not yet opened a position, there are not many stocks in hand, and more bonds and cash are held. The performance of the fund is not synchronized with that of the market. When the fund's position is gradually improved, it will gradually enter the operation mode of conscience.
Therefore, instead of snapping up the allotment of Daniel, it is better to take time to learn more about excellent old funds.
These characteristics of the new fund determine its early growth characteristics. We need to comprehensively evaluate these aspects and choose the right fund, hoping to help you.