What is the size of the fund to be liquidated?
According to the regulations of the CSRC, when the net assets of the fund are less than 50 million yuan for 60 consecutive days, or the number of fund share holders is less than 200 for 60 consecutive days, the liquidation conditions will be triggered. In addition, if the scale of the fund is too small, the foundation will encounter problems such as small investment scope, high cost sharing and insufficient investment and research resources. So when choosing a fund, don't ignore the index of fund size.
Of course, this does not mean that when investors choose funds, the bigger the fund regulations, the better. In fact, different types of funds have different suitable sizes, as follows:
1 Monetary Fund: The bigger the scale, the better.
This is because the money fund is a relatively liquid investment tool, and investors frequently apply for redemption every day. For example, Yu 'ebao, you may deposit it today and take it out tomorrow. If the fund is large, it can alleviate the impact of frequent redemption on the business.
2 Passive funds: The bigger the scale, the better.
Similar to money funds, generally speaking, the bigger the passive fund, the better. Passive funds, also known as index funds, generally choose specific index stocks as investment targets, trying to replicate the performance of the index, rather than actively seeking to surpass the market. Therefore, fund managers should first consider the impact of subscription and redemption on net worth. The larger the scale, the smaller the impact of purchase and redemption on net worth.
For example, there is a redemption of 20 million yuan. When the fund size is only 200 million yuan, the redemption amount is equivalent to 10% of the fund's net assets, which has a great impact on the fund's net assets. However, if the scale of the fund is as high as 654.38+000 billion, then the proportion is only 0.2%, which has little impact and the liquidity of the fund is better.
However, it is worth noting that the enhanced index fund is essentially an active management fund, because it generally adopts quantitative strategy to enhance the index, and this rule does not apply.
3 actively managed funds: 300-500 million is the best.
Scale may be a friend or an enemy of performance. Generally speaking, for large-scale funds, if they change positions for a long time, the flexibility of fund managers' operations will be limited. For example, a fund manager wants to sell a stock, but this stock occupies a lot of positions. If it is sold at once, it will cause panic, and selling a little may affect the income.
In addition, it will be more difficult for managers to manage large-scale funds. This is because there is a "double ten rule" in Public Offering of Fund: a fund holding the same stock shall not exceed 10% of the fund assets, and all funds under a fund company holding the same stock shall not exceed 10% of the market value of the stock. Therefore, the larger the fund scale, the greater the restrictions on fund managers' shareholding.
Generally speaking, the scale of 3-5 billion is relatively easy to operate for actively managing funds. Of course, if the fund manager has strong management ability, the conditions can be relaxed.
4. Bond funds: The scale influence is relatively small.
Unlike partial stock funds, bond funds are less affected by the size of the fund.
Large fund companies often have stronger bargaining power and richer resources at the bond trading level because of their own income model and trading nature. However, this does not mean that the scale of the fund can be expanded indefinitely, otherwise, high-quality bonds may not be available and the income may be affected.
The above are some contents of the fund scale, I hope I can help you.