With several friends for dinner, the dinner table is a repetitive topic — Fund. While listening to feel bored, but they continue to talk, you have no alternative but to listen. Exchange fell into two problems, one of their own money on the Fund’s glorious history, Another is what the Fund more than other funds to make money.

Undeniably, many fund investors in funds to bring in huge profits, but real-fund investors also have a common characteristic, which is constantly input and never retreat. For example, a fund investors bought 10,000 yuan fund shortly after profit to 1.5 million, how do? He will not be sold with a 5,000 yuan shopping, but is a total of 35,000 yuan invested 50,000 yuan to buy another fund, Then, after three days, 50,000 of 60,000 yuan into, we rush to invest again. eventually savings funds to move all of the Fund, and from long-term holders. Even the occasional sell holders of the Fund, the only upset, will soon be buying new funds continue to hold.

So, fund investors are doing the paper, and not money.

In fact, as long as it can sell to the bank funds, who can become fund managers, but is not difficult. For example, the first issue 4 billion in the fund, and then not get some of the small-cap stock market continued to buy into the net increasingly high. Then copy of a new fund, to issue four billion copies, and then continue to buy several small capitalization stocks, stock prices continue to rise, a further increase in the net, and then issue a 10 billion fund, as well as two former fund a large proportion of dividends, with 10 billion fund before the two took part Fund chips, the former two fund dividends and continued marketing, to open subscription, another issue to 100 million copies, so there will be a 30 billion for the fund and continue to push up the stock holdings cycle.

Subsequent shipments how do? No tubes, as long as could collect management fees, and that they can make money, sure to sell? Management fees come from? Instead of a new fund investors subscribe for new funds? As long as the bubble continued to eat, we can continue to attract new fund investors enter the market, naturally worry about money.

Copyright Fund China 2008.

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