Is it a good thing or a bad thing to have more fund shareholders?
There are many fund shareholders, which means that the more stable the stock fundamentals are, the more institutional investors will settle in, so the more fund shareholders are, the better the stock will be. When using this indicator, we should also pay attention to the timeliness. Generally, the index of the number of fund shareholders will only be released when individual stocks release quarterly, semi-annual and annual reports, so this index is the most useful on the day of release. Then, as time goes on, the effectiveness of this indicator will become lower and lower.
The main reason for the failure of the index is that it is impossible to know whether the number of fund shareholders has decreased to a certain extent, whether the number of fund shareholders has increased to a certain extent, or whether it is an internal transfer. Therefore, the operation of these funds will affect the authenticity of the whole index, and then let us make the wrong investment.
In this regard, the number of fund shareholders can reflect the fund's operation on this stock in the last quarter, but it cannot determine the fund's operation on this stock in the next quarter.