There are feedback from investors, and some funds have restrictions on the purchase amount, and even they are not allowed to buy! In fact, this is a fund company's purchase restriction, and it is not allowed to purchase funds in large quantities. For example, some funds suggest that the subscription amount cannot exceed 1 1,000 yuan. So why are some funds restricted? Is the fund purchase restriction good or bad?

First, why are some funds restricted?

1, safeguard the interests of fund holders

The essence of fund investment is that investors hand over funds to fund managers for management and operation, and fund managers invest the funds raised by funds in treasury bonds, certificates of deposit, stocks and other products, thus obtaining the expected return on investment.

For some eye-catching equity funds (usually equity funds and hybrid funds), they are usually favored by investors and attract a large number of investors to subscribe.

It takes a while for fund managers to invest. If funds flood in in a short period of time and fund managers cannot allocate assets in time, the expected return of funds will be diluted and the expected return of original fund holders will be reduced.

2. Maintain a stable fund size.

The bigger the fund, the higher the management ability of the fund manager, so the bigger the fund, the better. For active funds, the fund scale is too large, which is not conducive to the fund manager's position adjustment and shareholding.

Moreover, the larger the fund scale, it often means that the more shares the fund holds, and the fund manager may not have enough energy to track so many stocks at the same time. Therefore, in order to maintain the stability of the fund scale, some active foundations also restrict subscription.

Second, is the fund purchase restriction good or bad?

Generally speaking, fund purchase restriction is beneficial to investors and fund management, and most of the funds restricted are funds with outstanding performance and relatively recognized by the market.

However, this does not mean that the fund with restricted purchase must be a good fund. It depends on whether the investment style and risk of the fund match with itself.

The above content about why some funds limit purchases, I hope to help everyone. Warm reminder, financial management is risky and investment needs to be cautious.