1. Risk concentration: One of the main disadvantages of heavy-duty funds is that their positions in some stocks are very concentrated, which means that their performance may be affected by some stocks. If these stocks do not perform well, the performance of the heavy fund will also be affected. Therefore, investing in heavyweight funds is risky.
2. Impact of fund reduction: Once the fund reduces its holdings of a heavyweight stock, it will trigger a wave of selling in the secondary market, leading to a sharp drop in the stock price. In this case, it is difficult for retail investors to appear in time and may eventually suffer huge losses.
3. Fund contract and regulatory legal restrictions: the proportion of a fund holding a stock will not be too high, and it is difficult to raise the stock price alone. At the same time, there is competition among funds. Once there is any trouble in the market, they will reduce their holdings to reduce the risk, which will lead to the stock price falling.
4. Insufficient research ability: Some fund companies may be affected by limited research ability when choosing heavy stocks, resulting in low quality and investment value of heavy stocks.
5. Conservatism principle: Awkwardness stocks are often the heavyweights in the market, and the trend is relatively stable, but at the same time it is difficult to obtain higher returns. Therefore, investing in these stocks may not meet investors' expectations for returns.
To sum up, there are certain risks in the stocks with heavy positions in the fund, and investors should consider the risks and benefits comprehensively and make careful decisions when choosing investment targets.