In the fund market, investors often encounter the situation that a fund is limited to 1000 yuan or 10000 yuan. So do you know what impact the fund purchase restriction will have? What is the purpose of the fund's purchase restriction? The following small series will answer your question.
What is the purpose of fund purchase restriction?
Control the speed of capital inflow and redemption: when the fund absorbs a large amount of funds quickly or faces large-scale redemption, it may make it difficult for fund managers to effectively manage and invest funds. Restricted purchase can control the speed of capital inflow and redemption and maintain the liquidity and stability of the fund.
Protection of investors' interests: Restricted purchase can prevent investors from being unfairly treated because of a large number of redemptions by other investors, and avoid the difference of interests between early investors and late investors of the fund.
Avoid market manipulation: Some investors may try to influence the market price of funds by buying or redeeming in large quantities. Restricting purchases can reduce this manipulation and maintain a fair market order.
Risk control: Restricted purchase can help fund managers control the fund scale reasonably, thus better managing the investment risk of the fund. Avoid finding suitable investment opportunities because the fund is too large.
What impact will the fund purchase restriction bring?
Increase the difficulty of investors' transactions: the purchase restriction will make investors subject to certain restrictions when purchasing funds, and they need to wait or buy through other channels.
Affect the flexibility of funds: purchase restriction may cause some investors to be restricted by the fund purchase restriction policy and unable to adjust the allocation of funds in time.
Affect the liquidity of the fund: the purchase restriction may lead to the decline of the liquidity of the fund, and when investors need to redeem the fund in large quantities, they may not be able to pay it in time.
Changes in capital flow: Restricted purchase may cause some investors to turn to other investment products or channels to find more flexible and suitable investment opportunities.
Why is the fund limited?
The fund may be restricted under the following circumstances:
1, protecting investors' rights and interests
When the fund market is good or when dividends are paid, many investors will rush to buy funds. If subscription is not restricted, the scale of funds will expand rapidly in a short time, and if it is not handled properly, the income of other investors will be diluted.
2. Control the fund size.
As the saying goes, "a small boat is easy to turn around." When the fund scale is too large, the fund manager's ability to exchange positions and shares is high, and the fund manager needs to go through research and can't buy and sell at will. If you buy in large quantities, you can only add positions, and the shareholding ratio will increase after adding positions, so we should consider the influence of the "Public Offering of Fund Double Ten" restriction.
3. Foreign exchange control
For example, QDII funds are mostly restricted by foreign exchange control.
4. Performance Appraisal Node
The fund ranks its performance every year. In the performance appraisal node, for reasons such as performance ranking assessment, fund managers may impose subscription restrictions to ensure their income, avoid diluting the holders' income, and effectively prevent excessive fluctuations in net worth.
What if the fund is limited?
1. Buy other funds of this type or managed by the fund manager.
When investors restrict the purchase of a fund, they think that the fund or fund manager is better, and there is room for growth in the later period. They can choose to buy other funds of this type or managed by the fund manager in pursuit of income.
2. Buy on the next trading day
When the fund's purchase restriction is to limit the amount bought on the same day, for example, only 1000 yuan can be bought on the same day, then investors can choose to buy again on the next trading day.
What fund to buy has a relatively stable income?
Generally speaking, the income of money funds and pure debt funds is relatively stable.
The main investment directions of the money fund are cash, bank deposits with a maturity of less than 1 year (including 1 year), bond repurchase, central bank bills, interbank deposit certificates, bonds with a remaining maturity of less than 397 days (including 397 days), debt financing instruments of non-financial enterprises, asset-backed securities, etc. Therefore, from the investment direction, there is basically no investment risk, which is relatively high.
Therefore, the fluctuation of the money fund is relatively small and the income is relatively stable. When choosing a money fund, you can check the past income. Most cases are positive returns, but the returns will not be very high.
Pure debt funds invest 100% in bonds, and the investment direction of bonds is less risky, so the income is relatively stable, but compared with money funds, the fluctuation is slightly larger, but overall it is relatively stable. Money funds and pure debt funds have never invested in the stock market, so the risk is relatively small and the income is relatively stable.