Self-purchased funds generally refer to funds purchased by fund managers or fund companies themselves, which means that fund managers should manage their own money as well as their own. So why should fund companies buy their own funds? What do you mean by self-purchase? We have prepared relevant contents for your reference.

Why do fund companies buy their own funds?

Because fund companies want to help the establishment of new funds, when the market is not good, some funds are difficult to raise, and ordinary people dare not buy them. Fund companies are afraid to buy their own funds and help the products to be issued smoothly.

In addition, when the market has been very poor and the fund valuation is relatively low, the fund has experienced a sharp decline, then fund companies and fund managers will feel that this is a good opportunity to bargain-hunting and will consider buying funds from their own interests.

What do you mean by self-purchase?

The self-purchase of the fund indicates that the fund has fallen to a relatively low net value, and fund companies and fund managers will feel that there is still room for growth in the future. For your own benefit, simply speaking, you want to make money and bargain-hunting, which means you have more confidence in this fund.

However, we should also pay attention to the fact that investors should not blindly follow suit when the fund purchases itself. The self-purchase of funds does not mean that the follow-up funds will definitely rise, but there is also the possibility of falling. It just means that the self-purchase of funds will bind the interests of fund companies and fund managers together and bring good guidance to the whole market. Therefore, when investing, we should treat it rationally and have our own thinking.