What does it mean for the fund to set off a wave of self-purchase?
The wave of fund self-purchase means that fund companies have confidence in their own funds. Furthermore, the purpose of expressing confidence in one's own fund is to make the fund that buys the fund have no confidence. In addition, fund companies want to stabilize the stock market in general. If the fund redemption tide is superimposed, the impact on the stock market is self-evident, so the self-purchase of funds is conducive to stabilizing the stock market.
Since the beginning of this year, the A-share market has been continuously adjusted, and Public Offering of Fund has actively subscribed for its own shares. In the eyes of some investors, as professional institutional investors, the self-purchase behavior of fund companies may mean that fund companies judge that the market has fallen to the bottom. In fact, in history, the period when fund companies bought more from themselves often appeared in the stage when the market continued to fall and was at the relatively bottom, but the fund companies bought from themselves, which did not necessarily accurately mark the arrival of the bottom of the market. In the eyes of the industry, after continuous decline, market risks have been released and are at a low level. At this time, the fund company has higher cost performance and better long-term investment value.
Generally speaking, the fund set off a wave of self-purchase mainly to convey investors' confidence in the market and let investors treat this fluctuation rationally. It is normal for the fund to fluctuate in the short term, and investors need not panic. As long as the fund you hold has development prospects, there is a high probability of obtaining higher returns if you hold it for a long time, and investors need not worry about short-term fluctuations.
Finally, remind investors that the fund is risky and investment needs to be cautious.