1, the massive issuance of new funds can theoretically boost the rise of the stock market. Theoretically, after the collection, issuance and establishment of new fund products, a certain amount of funds need to be invested in the stock market in the future, which is determined by the general product terms in the current fund public offering. After the new fund is successfully raised, it is necessary to complete the stock subscription and open a position within 6 months at the latest. The proportion of this position can be more or less, but it must meet certain minimum requirements. At the peak of new fund issuance, the amount raised by an explosive new fund ranges from one billion yuan to tens or even tens of billions of yuan. This means that once the new fund is issued, there must be a certain amount of funds to buy certain types of stocks in the stock market in the next cycle. From this logical point of view, the massive issuance of new funds will naturally have an overall upward thrust on the stock market.

2, but in practice, the theoretical situation is often not necessarily 100%. There is a rule in fund issuance, which is commonly known in the industry as "doing well, doing well". Under this rule, the peak period when new funds are issued in large quantities and frequently break out is often the fiery stage when the index reaches the high point. Only when investors see the money-making effect of the fund will they be eager for the new fund. The new fund established at this time often faces the problem of high stock price in the subsequent opening period. Once the market is bearish in stages, the stock price is more likely to fall, which is why many explosions are issued and newcomers are easily quilted.

3. Take 202 1 Spring Festival as an example. Since the growth of fund net value in 2020 mainly comes from a large number of funds that buy Baotuan White Horse shares, the valuation of Baotuan shares is on the high side. 202 1 1 due to the market's pursuit of new funds, the valuation of baotuan shares reached the peak of the bubble in recent years. After the Spring Festival, with the change of market style, the group's share price fell sharply, driving the valuation down. At this point, the holder of the new fund is in an embarrassing state in the short term. Until May Day, most of the newly released explosions before the Spring Festival this year failed to return to 1 yuan, which is a very obvious typical case.

Therefore, investors can't make decisions based on a single factor at any time, and whether new funds are issued in large quantities is also such a factor. Investment is risky, so the operation needs to be cautious. This truth is effective not only for investors, but also for ordinary people.