Why is the fund limited?
1 The fund scale is growing too fast and needs to be controlled;
The scale, liquidity and profitability of a fund product are mutually restricted to some extent. Moderate fund size is beneficial to the operation of fund managers, while large fund size will be difficult to adjust. And the number of stocks that fund managers are optimistic about is limited. If the product scale is too large, it will pose a certain challenge to the investment layout of fund managers, and it is possible to find a suitable target for investment in a short time.
2. Guarantee the holder's income:
After many investors join some funds, if there is no suitable target investment, the influx of large amounts of funds will lower the average income of each investor.
3. Avoid heavy positions of investors at short-term highs:
If the market skyrockets and investors are in high spirits, it is easy to buy at a high level. However, the fund manager believes that the current market position is high, and the investment industry is highly valued, which is not suitable for new funds to buy in large quantities. Therefore, the purchase restriction will be implemented to prevent investors from chasing up sharply and avoid high positions.
Generally speaking, fund purchase restriction means that the fund manager is actively controlling the scale, controlling the investment within the fund manager's ability circle, or giving investors appropriate risk warnings. From these two perspectives, this is also a way for the fund to be responsible and protect the people.