Fund Products "Miniaturization" Exacerbated The Market How To Do

On the basis of the "public offering of securities investment fund operation and management measures" implemented in August 8, 2014, "after the fund contract comes into effect, the number of fund holders is less than 200, or the net asset value of the fund is less than 50 million yuan for 60 consecutive working days. The fund manager shall report to the CSRC and propose the regulations for the settlement."

In the market, the fund with a scale of less than 50 million yuan is defined as the "mini fund", which is likely to be liquidation or pformation because of its small scale.

But no matter liquidation or pformation, investors' investment efficiency will be greatly reduced and even additional losses will be caused.

Therefore,

When choosing funds, they must avoid the "mini fund".

The trend of "Marginalization" is obvious.

The core idea of the recent FOF fund is to build investment portfolios and select high-quality funds.

From the "guidelines for the operation of open raised securities investment fund No. second" - the third "operating period of the fund should be less than 1 years and the scale of the recent periodic report should be higher than 100 million yuan", as can be seen that the future fund of less than 100 million yuan will not be the target of the investment of the FOF fund.

In the market, the fund with a scale of less than 100 million yuan can not be included in the investment scope of the FOF fund, and the fund with a scale of less than 50 million yuan will be more "marginalized", which means that the scale of the small scale fund is lower than the market.

With the development of industry in the future, the development trend of such funds is likely to become more and more marginalized. Therefore, it is suggested that investors should not invest in small fund products.

The causes of "mini fund" are varied, mainly due to the unsatisfactory performance of net value, the indifference of product design, and the lack of marketing.

From the perspective of fund classification, "

"Mainly distributed in short-term financing, ETF and index funds.

Such funds failed to do large-scale operations, and later performance did not pick up, leading to previous investors' choice of redemption, and subsequent investors were in distress because their performance was sluggish and no longer invested.

In addition, the early part of the "institutional customization" of the new fund, due to the implementation of the new IPO rules, made the new revenue decline sharply, institutional customers choose to redeem, so that these funds also become "mini fund".

In the first half of 2016, the Shanghai Composite Index fell 17.22%, and the growth enterprise market index fell 17.92%. In the same period, the net value of equity funds of various types also decreased. The average net loss of equity funds was 12.04%, the net loss of index funds was 14.20%, and the stock market weakened as a whole, resulting in the overall loss of equity funds.

On the other hand, the frequent default of credit bonds has led to a decline in bond yields of low-risk investments.

Affected by this, the overall size of the public fund has shrunk. As of the end of June 2016, the total scale of the 108 public fund managers' public funds decreased by 427 billion 100 million yuan to 8 trillion and 380 billion yuan at the end of last year, to 7 trillion and 950 billion yuan, a decrease of 5.10%.

With the shrinking of the overall size of the public fund industry, many funds have been redeemed in large quantities, exacerbating the fund's "miniaturization".

According to the statistics of Jinxin fund evaluation center, as of June 30, 2016, a total of 270 funds had a net value of less than 50 million yuan, an increase of 53 over the end of 2015, an increase of 23.77%.

Timely redemption

Among many fund companies, the smaller "mini fund" status is relatively lower.

First of all, the relevant fund managers' bad historical achievements forced themselves into an awkward position.

Secondly, these "mini" products have low contribution margins to fund companies.

Therefore, from the perspective of company management, these funds are also likely to be in a secondary position in the support of company resources, thus the "mini fund" will enter a vicious circle.

From the past market situation, there are two risks in the mini fund, one is winding up.

Since August 2014, huitianfu 28 days of short-term financial debt base opened the first step of the delisting, there is a continuous "mini fund" liquidation.

Compared to winding up, more choices are made. In the two years of 2014 and 2015, up to 50 odd "mini funds" have chosen to pform.

Transformation does not mean that future performance can be changed. If the follow-up research and development capabilities and marketing can not keep up, the scale growth after pformation may be very limited, or even decline again, and eventually it will still be hard to escape the title of "mini fund".

If we just follow the hot spots of the market to seek to change the situation of too small a scale, it will probably only play an urgent role.

From past experience, there are few "mini funds" that will greatly improve the scale through pformation.

As a whole, the mini fund will eventually greatly reduce the efficiency of investors' capital utilization regardless of liquidation or pformation. Moreover, now the new development fund is flourishing, and investors do not need to be entangled in a fund product that has "failed" before.

Therefore, it is wise for investors holding Mini funds to redeem them in due course.