By Cao Zhongming

Only purchase, not redeem some of the new funds have become the “marketing” tricks. As a new fund, and open purchase should be permitted to redeem on the other. Since the opening of the purchase, it should allow investors to redeem the operation. However, some investors in the new fund violated the wishes, disregard the rules of the game, from their own side note, “a guilty conscience.”

Obviously, the new fund such an approach has its own demands on the inside. According to the relevant regulations, fund companies are under its control the size of the Fund to collect management fees, and its performance is not much related. Fund management fees from the understandable, but if that is the “mandatory” to ignore the provisions of the interests of investors, it is open to question.

Statistics show that from July 1, 2004 to date the 163 open-end fund-biased stocks, after 113 open purchase, not open redeemed, the majority of the establishment is open about a month in subscriptions and redemption open about two months, which is 10 funds for the establishment of the three months when processing on the redemption business. In January this year established a fund set up in the announced closure notice period will not be more than 30 days after the close of closed open redeemed, in fact the fund may actually until two months after opening the redemption business. The fund’s actions finally got the “return” : large investors to redeem this action led to the redemption fund in the open in the three months after, the shares dropped 50%.

Previously available in the fund, A-shares market speculation rampant and price volatility, the ups and downs index is a frequent phenomenon, in order to stabilize the market and guide investors to establish a correct investment concepts, a regulatory launched a securities investment fund initiative and its purpose is reflected in maintaining market stability. Objectively speaking, since the fund after the birth, although suffered a bear market, but index violent fluctuations, market fluctuations phenomenon has been improving. In particular, the value of the fund investment philosophy has been accepted by many investors, and put in personal investment, it will also make many fund investors follow the lead.

But as fund companies, or because of their profitability and the size of funds under great, new funds, such as dividing the measures to attract investors and a minority. However, if the fund to the rules, not only is unfair to investors, is the integrity of the fund’s performance. If only their own interests and to their “God” (investors) set aside, it will certainly be spurned.

Nearly two years of bull market, funds can be said to earn a lot of money, as well as fund investors have brought great rewards, it is their responsibility to share. The fund will also help the bull market, the first subscription size also increased, Jiashi Strategy at one day hit 40 billion yuan share. A few years ago the fund size if more than 10 billion yuan, sufficient to cause the market surprised, and at present, the “myth” was not worth mentioning. Therefore, not only is the fund investors, fund companies is the big bull market winners.

The fund should treasure the hard-won opportunities of development, following the dark side of the fund, on the one hand criticized by the market, the other for the development of manufacturing an obstacle.

Through amount of the funds only purchase, not redeem, indicating the fund supervision there is not a small loophole. Said that to protect the interests of investors, the fund is clearly contrary, and this is not the investors would like to see.

A regulatory need to take this opportunity to right the fund of movers and shakers in the market for a big trimming. Apart from enacting more stringent rules of the game well, for those who dare to cross red lines, must be severely punished. So, in order to allow the fund to investors bought assured that holders at ease.

Copyright Fund China 2008.

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