Each fund product will set a minimum subscription amount and a large subscription ceiling, but the large subscription ceiling is generally high, and individual investors usually do not touch the ceiling. But recently, many funds have begun to suspend large-scale subscriptions, so why should funds limit purchases? The following is what Bian Xiao collected for everyone about why 202 1 funds are restricted _ What are the trading rules of on-site funds? I hope I can help you.
Why is the fund limited?
1 Protect the interests of investors. In fact, buying a fund is to hand over the funds to the fund manager for management and investment, but it takes a while for the fund manager to open a position. If a fund is sought after by the market, a large number of investors and subscription funds will flood into the investment layout of fund managers in a short time. Before these funds are effectively opened, large subscription will dilute the expected income of the original holders.
2. It is convenient for fund managers to operate. The larger the fund scale, the higher the requirements for fund managers to change positions and hold shares. If the fund scale suddenly increases, the fund manager may not have enough experience and ability to track so many stocks at the same time, resulting in passive investment strategy.
3QDII fund foreign exchange quota limit. QDII funds often announce suspension or restriction of subscription, because QDII funds need to invest in foreign currency. If the foreign exchange quota is insufficient, they can only suspend subscription or purchase restriction.
4 Other reasons. Recently, affected by the collapse of crude oil prices and the spread of COVID-19 epidemic abroad, the stock market is bleak, and many safe-haven funds have flowed into the bond market, resulting in a sharp drop in the expected yield of bonds. It is difficult for fund managers to find a suitable bond allocation, so many bond funds have suspended large-scale subscription recently.
Public Offering of Fund's main profit sources include fund transaction costs, such as subscription fees and redemption fees, and fund management fees. Generally speaking, the larger the fund, the more frequent the transactions, and the more profits the fund company will make.
What are the trading rules of on-site funds?
1 trading place. On-site funds need to be traded through stock accounts, so before buying on-site funds, stock accounts should be opened through the trading software of securities companies.
Two trading hours. As the funds on the floor need to be purchased through the stock account, the trading time is the same as the stock market, which is 9: 30- 1 1: 30, 13: 00- 15: 00, excluding weekends and legal holidays.
3 transaction price. The transaction price of OTC funds is calculated by the net value of the fund unit on the trading day, and there is only one transaction price every day. The trading price of on-site funds is similar to that of stocks, and it is traded at a timely matching price, so the trading price fluctuates in real time.
4 the fund will vote. On-site funds mainly include LOF funds, ETF funds and closed-end funds. Although on-site funds can also make fixed investment, they generally do not support automatic fixed investment and require investors to take the initiative to operate. In addition, on-site funds generally do not support conversion.
5 transaction fee. The transaction rate of OTC funds is lower than that of OTC funds, and the general rate is around 15‰. Some brokers also offer discounts.
6 dividend method. On-site fund dividends are limited to cash dividends, excluding dividend reinvestment.
Tips: On-site fund trading is a matchmaking transaction between investors. If you want to sell the fund share, other investors must buy it, so there is liquidity risk in the on-market fund with small trading volume. In addition, there are differences between the on-site and off-site prices of on-site funds, so investors should carefully consider fund products with on-site prices higher than off-site prices.
How to make a fixed investment in the fund
1 fixed investment amount. Fixed investment, like deposit, is a long-term financial management method. The longer the fixed investment time, the more prominent the advantages of fixed investment. Therefore, the fund should choose idle funds that have not been used for a long time. As for the amount of fixed investment, you can look at personal economic conditions. It is recommended to leave at least 3 to 6 months of liquidity before considering fixed investment.
2 Fixed investment time. The frequency of fixed investment provided by the general system includes daily fixed investment, weekly fixed investment and monthly fixed investment. In the long run, the impact of fixed investment cycle and time on the expected return of fixed investment is relatively small, which can be weekly or monthly, or Thursday or Friday.
3. Fixed investment funds. Theoretically, all funds can be invested, including money funds, bond funds, stock funds, hybrid funds and index funds. Among these three types of funds, index funds are highly praised by investors, because index funds mainly track and copy indexes, which are relatively less affected by managers' investment ability and have relatively low transaction rates.