Is it risky to suspend the purchase of mutual funds? When we find that mutual funds suddenly stop buying, will it bring us some risks? Will we lose money? The following is the portfolio fund that Xiaobian brings to you. Is it risky to stop buying? I hope I can help you.
Is it risky to stop buying mutual funds?
1. Increase the purchase risk
When the fund stops purchasing, investors can't make new purchases, but only redeem the fund, which increases the investment risk. On the one hand, if the fund held by investors has a large increase and wants to get more income, they can't increase their positions at this time, so they can only sell their original holdings and lose the opportunity to continue making money. On the other hand, if the fund held by investors falls sharply, it may lose money when it is redeemed.
2. Affect the flow of funds
Suspension of fund subscription will also have an impact on the flow of funds. If some investors don't understand the reasons for the suspension of a large number of fund purchases and redemptions, it may lead to the reduction of fund assets, thus affecting the asset allocation of the fund and reducing the investment income of the fund.
3. Affect the confidence of investors
Suspension of fund purchase will bring unnecessary worries to investors, especially those who have just started, and it is easy to panic. Investors may worry that the fund's suspension of buying is due to the loss and high risk of the fund, which affects investment confidence.
4. Expose the problem of capital operation
If the fund stops buying frequently, it may expose the problems existing in the fund operation. This may affect the confidence of investors, and may make some investors choose to quit the fund, thus affecting the sustainable development of the fund.
What is a suspension of fund purchase?
Generally, funds are jointly invested by multiple investors to purchase assets such as securities, bonds and money market instruments, so as to achieve the purpose of benefiting from them. Suspension of fund subscription refers to the fund manager's suspension of fund subscription and subscription after careful review, if it is difficult to maintain the existing fund scale in the short term. When the fund stops buying, the investment of the fund can only be redeemed.
Why did mutual funds stop buying?
According to the Notice on Regulating Fund Investment Advice Activities, at this stage, many Internet sales platforms can no longer invest in portfolio funds. First of all, there are many products in the portfolio, and some products have exceeded the risk tolerance of investors, so they are currently in the stage of suspending buying.
In order to regulate the regulatory requirements of fund investment advice activities, fund companies will regulate the portfolio and suspend the buying function of the portfolio. During the adjustment period, the asset operation and redemption of the original portfolio held by investment customers will not be affected, and some portfolios may be converted into fund investments in the future. Investors can pay attention to the announcement of fund companies.
Combined fund is a kind of fund financing method that invests in multiple underlying funds at the same time. In addition to investors matching their own fund portfolios, there are also many direct sales of portfolio fund products. Compared with ordinary funds, the risk of combined funds is higher.
What happened when the fund stopped trading?
The suspension of fund trading means that during this period, the fund cannot purchase and redeem, and the transaction is suspended. After the fund is closed, the subscription and redemption will be open, and there are also unilateral restrictions, such as suspension of trading.
Suspension of fund trading is mostly because the fund company controls the size of a fund, that is, the total share, and sometimes it is also to avoid and disperse the risks brought about by violent market fluctuations.
Why is the fund suspended?
1, the fund is oversubscribed by investors, which leads to the rapid growth of the fund scale and needs to be suspended.
2. The Fund may pay dividends, so the subscription of the Fund is suspended.
3. The funds are due to holding some shares of the company that have not yet been circulated, and these shares of the company that have not yet been circulated resume trading. In order to protect the interests of holders, these funds decided to suspend subscription.
Impact of fund suspension of trading
For funds that have been bought and suspended, the expected return of investors will not be affected. Fund companies will also issue corresponding announcements. During the suspension period, the net value is generally released once a week, and investors can judge the rise and fall of their expected net income according to the published net value.