By Zhou Hong

For several new fund issued by the low success rate, a strong stimulus fund investors purchase, the fund’s enthusiasm, some banks in Shanghai outlets reproduction fund investors subscribe for the new fund line up the boisterous scene.

Latest information shows that yesterday 10 billion limited the Hua’an Enhanced Strategy Fund focused purchase sold out in the first day. As of 17:00 yesterday afternoon the preliminary statistics, Hua’an Fund Enhanced Strategy Fund “closed-end to open-end” focus on the same day the purchase amount has been more than 70 billion yuan, specific data is further statistics.

“Closed-end to open-end” has been warmly welcomed, a re-creation record.

This figure further updated in the past two weeks since the new fund offering (including the old centralized purchase funds) to freeze the funds of the scale new highs. Record of the Fund and the “Closed-end to open-end” in a single day since the concentrated purchase scale a new high. In addition, the record also rewritten Fund “Closed-end to open-end” funds focus on the total purchase records. Previously, the record holder for ChinaAMC Blue Chip Core, the fund concentrated in the first days of purchase, the freezing of funds for the total 43.8 billion yuan.

Hua’an Fund Management Company, announced today, the focus from the original purchase date of the August 28 advanced to the August 15, since August 16 is no longer acceptable for the applications.

Hua’an Fund Management Company said that the hot market atmosphere, good channel, good performance of the Fund, together with the Hua’an Fund Enhanced Strategy current focus on the hot-selling subscriptions. This year, Hua’an Fund Management Company under the stock-type, equity fund overall performance was better.

Gradually shown symptoms of the three non-rational.

The new fund of funds issued purchase increasingly, of course, was a promising industry performance. However, when the purchase funds climbed 70 billion yuan mark (it could even climbing 100 billion yuan) when the whole market issue can not be said that the atmosphere has become a little rational enough symptoms of fund investors should be concerned.

First, the fund thick application independence, “the new fund.” The past two weeks notice, the new fund offering (including closed-end to open-end fund and the old centralized purchase) of purchase funds continue to create new high. From 35 to 60 billion yuan, and then to the present 70 billion yuan, there was a high than a high. But the same time, old fund purchase, and even in the same company’s old fund the continued purchase still dull. The fund issued purchase hot side of the cooler side, I must say was a non-rational emotional performance.

Second, the fund issued only favored equity funds. While the past month, the fund issued by the heat rise continuously, purchase funds amounting to 10 billion yuan, but one obvious situation of the Fund issued only “equity funds” independence, as long as it is in equity funds regardless of the management team, no matter what kind of investment style, will be grab completely. While the ratio of investment in stocks relatively more stable products, flatly being received. This undervalued investment “risk premium” of the tendency of the market early and outside the risk of similar incidents.

Third, the fund continued high fever, the fund has begun to have an impact on investment concepts. Judging from the current understanding of the situation, part of the new fund at the beginning, there have been weakened value judgment, pay attention to funds of the state game. Individual agencies and even with later for robbed chip of thinking and mentality to care for the new fund. Past experience shows that the short-term mentality of the game, can often follow-up fund management planted hidden danger.

Copyright Fund China 2008.

You Might Like: