There are so many high-quality old funds with stable performance in the market, why are there so many people keen to snap up new funds?
The explosive sales of the fund mainly benefited from the slow bull market in the past two years. In the past two years, the performance of the fund was too outstanding, and the income of the people was much higher than that of the investors, which triggered a frenzy of investment funds.
The money-making effect of funds exceeds that of stocks, attracting more and more investors to look to the fund market.
In the past 2020, both Public Offering of Fund and private equity funds have gained a bumper harvest. The scale of private equity funds has increased from 2.45 trillion in 20 19 to 3.74 trillion in 2020, with an average yield of 26.7%. The scale of Public Offering of Fund has increased from 2.36 trillion in 20 19 to 4. 12 trillion in 2020, with an average yield of 50.
Large-scale transfer of residents' assets, the development of stock funds, and the fund sales data exceeded expectations.
These reasons have led to the popularity of subscription in the new fund market.
Who wins or loses the war between the new fund and the old fund?
transaction cost
The subscription fee for new funds is generally around 1% to 1.2%, and there is no discount. The subscription rate of the old fund is almost the same, but now many old funds can get a 10% discount on the subscription fees of various platforms, so this old fund won.
(of investors) buy in
From the establishment to the opening operation, the fund generally goes through the cycle of issuance, raising, liquidation and opening. If the fund's opening period coincides with the rise of the broader market, it is likely to miss the best opportunity to open a position, and the old fund has already opened a position, which can better grasp the market opportunities. But in a bear market, this new fund is more flexible.
So we often say that the bull market buys the old and the bear market buys the new.
positional information
When the new fund is established, the information disclosed is limited, and it can only refer to the historical performance of other funds managed by the fund manager, while the old fund can grasp more comprehensive and sufficient information, and the historical performance, position and investment style are more conducive to making judgments on the fund.
To sum up, do you know how to choose?