What is the reason for the fund to be short? When your fund bursts, you should seek the reason at the first time. The following are the reasons for the fund explosion brought by Bian Xiao, hoping to help you.
What is the reason for the fund explosion?
There may be many reasons for the fund to be short. The following are some factors that may lead to short positions in the fund:
Market risk: the fund invests in various assets in the financial market, such as stocks, bonds and futures. If the market fluctuates abnormally or falls sharply, the value of the fund's portfolio may be impacted, resulting in short positions of the fund.
Liquidity risk: when the assets held by the fund cannot be quickly realized or traded, the fund may face liquidity risk. If the assets held by the fund encounter liquidity difficulties, such as a large number of redemption applications can not be met, the fund management company may be forced to sell assets at a lower price, which may lead to short positions of the fund.
Leverage risk: Some funds increase their investment scale and potential income by borrowing extra funds, which is called leverage operation. However, leverage also means taking higher risks. If the market situation deteriorates or the value of assets falls, leveraged investment may lead to greater losses for the fund and aggravate the risk of fund opening.
Credit risk: when a fund purchases fixed-income assets such as bonds and asset-backed securities, there is a risk that the issuer will default or the credit quality will decline. If the bonds held by the Fund default or are significantly impaired, it may lead to short positions of the Fund.
Management risk: the management ability and decision-making mistakes of fund management companies may also lead to fund short positions. For example, improper investment strategy, failure to effectively control risks, and excessive concentration of investment.
Why did the fund explode?
The short position of the fund means that the loss of the fund is very serious. Generally speaking, it may be that the securities invested by the fund manager have fallen sharply, or that the fund manager has added leverage, but after adding leverage, the stocks or bonds have developed in the opposite direction, so short positions have appeared.
Generally speaking, Public Offering of Fund will not explode, but the asset allocation ratio may exceed 65,438+000%, that is, the fund manager may conduct leveraged financing transactions through bond pledged repo. When the price of pledged bonds falls, only a part of the funds pledged by the fund manager is lost, which may be a great loss.
Public Offering of Fund has strict institutional leverage restrictions on investment: the leverage ratio of open-end funds (i.e. total assets/net assets of funds) shall not exceed 65,438+040%, that of fixed-term open-end funds shall not exceed 200% in the closed operation period and 65,438+040% in the open period.
In addition, private equity funds in China may break out, because the risks of private equity funds themselves are relatively large. When some equity private equity funds invest in unlisted companies, it means that private equity funds lose money, which leads to the fund's short position.
Which is riskier, private equity fund or Public Offering of Fund?
The risk of private equity funds is greater, but the return of private equity funds will be more. Because there are many rules for trading in Public Offering of Fund, there are no restrictions on private equity fund trading, and Public Offering of Fund has strict restrictions on investment varieties, investment proportion and matching between investment and fund types. Under the strict supervision of the law, it has industry norms such as information disclosure, profit distribution and business restrictions. The investment restrictions of private equity funds are completely stipulated by the agreement.
The most obvious characteristics of private equity funds are high purchase threshold, high risk and high income. Public Offering of Fund's risk rating is divided into five grades from low to high: R 1 (low-risk products), R2 (low-risk products), R3 (medium-risk products), R4 (high-risk products) and R5 (high-risk products).
What does the short position of the fund mean?
Short position refers to the situation that the customer's rights and interests in the investor's margin account are negative under some special circumstances. In most cases, the biggest reason for short positions is related to improper fund management. Moreover, stock financing and securities lending, futures, options and so on will only explode. It should be noted that although the fund account will not explode, the loss will be uncontrollable.
The relationship between fund and stock market
Generally speaking, funds are influenced by the stock market, and changes in the stock market will lead to changes in funds. When the stock market rises, the related funds may rise, and when the stock market falls, the related funds may fall. There is a positive correlation between them. The positive correlation between the two is mainly based on the investment target of the fund, that is, the stocks in the stock market, which is the same factor of the stock market and related funds. The change of the stock market is determined by the stocks in the whole stock market, and the change of related funds is also determined by the change of a basket of stocks.