The reason for the fund's heavy position is that the stock of a listed company held by a single fund does not exceed 10% of the circulating market value. Even if its own proportion is small, as long as the fund holds one stock higher than other stocks, it can be regarded as a fund's heavy position; In addition, for the shares of a listed company, if most of the circulating shares are held by institutional investors, accounting for more than 20% of the circulating market value, it can also be called the fund heavyweight shares.
Is the fund awkward?
The quality of the fund's heavy stocks depends on the market. In the bear market, the stocks with heavy fund positions are better than most stocks in the market, while in the bull market, the stocks with heavy fund positions are worse than most stocks in the market. In the bear market, because the fund holds a large number of chips, the trend of individual stocks is relatively stable, and there will be no continuous decline. Speaking of the bull market, it is also because a large number of chips are in the hands of the fund, which leads to its weakness in the market.
For OTC funds, the stocks they want to raise must be stocks with more chips, small plates and themes in their hands. However, the fund's heavy stocks do not have such characteristics. The fund's heavyweight stocks are often stocks with large plates, large funds and small increase if the theme is matched, so they are not as good as other stocks in the bull market.
Therefore, we can find that the fund's heavyweight stocks are selected by fund companies, so the texture of individual stocks is much better than other stocks. If you make a long-term investment, you might as well look for the most suitable stock among these stocks. Of course, short-term investment is not suitable for such stocks.