Fund is not stock
From: China Securities News
Compiler: http://www.fundcn.org
Fortune dialogue
Guests :
Market director of the Guohai Franklin fund: Sun Jiaqing (middle)
Haifutong Fund Department is responsible for monitoring people: Xi Wanrong (right)
Soochow Fund Marketing Manager of the Department of channels: Chen Yaohua (left)
Moderator : Kong Weichun
Fund is not stock
Moderator : The SFC has recently EAA Shanghai, Shanghai local 28 fund companies, 10 securities companies, joined six banks and two law firms in Shanghai jointly launched a fund investor education activities. – How can the people of rational investment, I believe, the three guests have said many times before. Today, we would like to ask you briefly tell investors, which may be harmful, harmful Why? Please Let’s talk about guests, investors what you see, was worried.
Sun Jiaqing : I feel the biggest problem is that many investors do not understand themselves, unaware of their risk tolerance and investment time. On this basis an investment, often with market fluctuations have a great moods. And these people for the opinions of experts accept relatively low level, and this has made us more of a problem.
Xi Wanrong : I told customer service staff to find the time to communicate, there are many domestic fund investors as a fund as a stock investment, put in the stock market investment intact ways of moving these funds to the market, and formed a short-term speculation phenomenon. We can see our own securities market on the previous stage of some closed-end funds, the whole trend of very short-term.
Chen Yaohua : We and the banking channels, client manager, a number of important clients have a wide range of contacts, have encountered a similar situation. For example, the Fund as a stock speculation. Substantial market shocks, we received a lot of customer managers, clients, friends of the telephone and asked not to be redeemed, Was all this stockpile, or how kind. In fact, I think that the fluctuations in the market, the fund manager has helped you to the adjustment, So you further adjustment, is probably unnecessary.
Moderator : So is not some credit of the Fund on regardless?
Chen Yaohua : Something to share with you, “long-term holding, appropriate adjustments.”
How much revenue can expect
Moderator : Fund investors might be the initial encounter a problem, how much money to buy fund? Is the air, or take part?
Sun Jiaqing : Investors often believe that investing is to make money, once the funds invested, and it must in each time point, have to make money every day. In fact, this is not the right investment philosophy is you should be able to control the scope of the risk, you know the expected proceeds. From abroad, in the proceeds of this time should be determined by the relative, the market is volatile, but the market a long, In three to five years, at least 10% of 2001 revenue is determined by the relative.
According to their age, liquidity needs, as well as their own ability to take risks to the allocation of their assets. New investment can remember two points : First, you should definitely not put all the eggs in one basket. Some investment choices varieties; 2 is the periodic fixed investments, or the average cost method. For unknown species or investment projects, the method regularly fixed particularly suitable. The advantage of this approach is that the time spread the risk, on the whole, investment in safety is very high.
Moderator : You mentioned the expected yield 10% a year, to the territory of the stock open-end funds as an example. an average of 10% is a reasonable long-term level of return?
Sun Jiaqing : The issue of domestic relatively difficult to answer, the Chinese securities market and the fund industry development time is not so long, can make reference to the data is limited. According to China’s high economic growth momentum, if the investment 10, We consider that the annual income of 10% is a relatively conservative estimate. Now the stock market is always 100% of the proceeds, I think that people are sometimes misled by greed.
Moderator : every year at least 10% of that in the next few years will be doubled?
Sun Jiaqing : Almost 7 or 8 years.
“Like the new fund”, “like low-cost funds” unreasonable
Moderator : Misunderstandings mentioned investment, I feel that the “loyalty” is a typical misunderstanding. China also likes low-value funds, fund dividends, resolution after the sustained marketing are to be welcomed. Ask the guests to talk about this issue of the correct understanding.
Chen Yaohua : Regardless of dividends or net Resolution low, are the external appearance Fund. Fund’s net growth capacity is inherent. Old to the new fund as an example, if you encounter bull market, the new fund 710048 cost, growth in net than on the old fund, however. In a bear market, the new fund 710048 cost is relatively low, the net growth rate of the Fund may be better than the old one o’clock. In a bear market or bull market, the value of the Fund to implement a final point, that is net growth It is the people – all the sources of income.
Xi Wanrong : Some investors think the new fund cheaper, your old fund. In fact, the Fund is entirely different and stock investment products. Fund buying, buying is behind the entire research team for the ability to invest, to buy stocks to buy is a listed company and bought the enterprise. The new fund is not new shares to a net value of money does not mean that there is no risk, and high net worth does not mean that behind great risk.
What funds can not buy
Moderator : Next, we discuss a more lethal problem, which kind of fund can not buy it? Some people said “overstaff overload” can not buy, how do you?
Sun Jiaqing : Excessive scale of the Fund can not buy, I agree. Each market has its own carrying capacity, may not be able to cope with the short-term funds much of the trading volume movements. The problem is that in the end what kind of scale is “too much”? We should have a dynamic defined. A few years ago had said, the best size is 20 million, it now appears that 20 billion is already in the Mini. This is in line with the capacity of the market, with each company, each of the fund managers the ability to operate. Regulatory departments will be issued this year have been limited to the upper 100 billion, I think 100 million may be at this stage to the operation of the scale and over again, then it may also increase the degree of difficulty.
Moderator : It seems 10 billion fund is not large. There is another view, do not choose the “anomaly” of the Fund.
Chen Yaohua : Yes, this I do not agree to long-term fund holders. Not on the lease and operation of the direction of the investment went to other places, style is unstable, speculative performance.
Sun Jiaqing : Performance jumped up and down or style drift, investors may be appropriately avoided. It concerns every one quarter of the stock positions change, if change too much, to a certain extent can prompt fund managers do not follow the long-term, firm concept in the operation of this product.
Xi Wanrong : Can also look at the concentration of shareholdings, scattered holdings of the fund relative risk even smaller. On single stocks proportion of the holders of 10% of the statutory limit, If merely hoping the highest proportion at 5%, I think it is acceptable. If more than 8% to 9%. concentration a bit high.
Chen Yaohua : Fund buying is in fact the fund companies to buy investment management capabilities. So, when are buying fund managers or investment team has changed dramatically and the fund companies or major tragedies, Investors should pay close attention.
More you can see http://www.cs.com.cn
Guests at the dialogue scene exciting repeat
Q : should buy an open-end fund or closed-end funds?
Sun Jiaqing : Open and closed nature is very different. Closed-end funds derived from some shortcomings, has an open-end fund. An open-end fund which is divided into Equity, mixed, bond type, money market funds, and ensure the type and so on. Each Fund’s risk return characteristics are not the same. Currently, many people are closed-end funds with great enthusiasm, Closed-end funds is high and there is the discount expired “closed-end funds to open-end funds,” the risk-free admission interests. Some people only know that the investment fund is closed, but the chances of that? For how long? He does not understand. Buy now closed or open, you can focus on the pursuit of what is. If you are prepared to fund the retirement after 10 years of buying open than closed more suitable. If you just want to make short-term returns, perhaps there will be a closed stage opportunities.
Q : Now there is the Innovation Fund, for which type of investment?
Sun Jiaqing : Now the innovative fund is not a single category of products that, in fact, are an innovation of a different type, there is no way to generalize.
Q : Does not the bear market for the purchase of index fund?
Xi Wanrong : I think that regardless of bull or bear market, investment funds are a long-term investment behavior. As long as optimistic about China’s long-term economic growth trends, anywhere they can make investments. Fund investors right, the most important thing is to focus on the risk tolerance to determine the ratio of investment and long-term holders, will be able to obtain long-term returns. If the international average annual yield of 10%, I think domestic than foreign earnings higher because we are developing countries, the emerging markets.
Q : I am on June 13 to buy Guohai Franklin’s Fund, yesterday suffered two months of wages. How do?
Sun Jiaqing : The investors have just said, he buys the fund at this time points to bear some loss, Personally, I give him the proposal is a regular fixed is the best way. Not to regulate the market changes on a monthly fixed buy regularly, in fact, the drop in the market when you are very good news, because the market or more, the same amount of money can buy more of the shares, which can spread significantly lower your costs. If we accept that the Chinese market is a long-term bull market, so this time increased investment, can be very fruitful future growth.
Copyright Fund China 2009.
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