From the beginning of this year to the present, the stock market continued to decline, and the fund market also experienced a large-scale cooling, and the net value dropped significantly. However, the heat of the fixed-income fund cannot be reduced…
There are 2 fixed-income funds that have been issued this year. The Jiutai Ruifu event-driven and Caitong multi-strategy upgrades are still in the issuance period, and there are Boshen Ruiyuan increase, Bo Shi Ruili will increase, Bo Shi Ruiyi will increase, Guotai Rongfeng will increase, Xincheng Dingli will increase, Yinhua Xinrui will increase, and Yinhuaxin will increase 7 funds. The most popular of these is the Caitong Public Offering No. 2 — Caitong Multi-Strategy Upgrade Hybrid Fund, which was launched on February 18th. The original planned one-month issue period sold more than 3 billion in just two weeks. Yuan, the end of 14 days in advance to raise.
Why are these funds so hot?
How are they so hot?
In fact, the reason is two words: fixed increase.
The so-called fixed increase is the private placement, which means that the listed company non-publicly issues shares to a small number of qualified investors. Let us look at an example. China Baoan issued shares to specific targets on March 3, 2015. The issue price was 8.33 yuan, and the closing price of the day was 14.84 yuan, which has a large discount space.
Everyone is pursuing a fixed-income fund because it has the opportunity to buy stocks at a fixed price lower than the current share price of the listed company. It turns out that there are cheap to earn!
But wait a minute,
But why is there a difference?
Let’s take a look at the market rules. According to Article 38 of the Measures for the Administration of Securities Issuance of Listed Companies: the issue price is not less than 90% of the average price of the company’s stock on the 20 trading days before the pricing benchmark date. It is necessary to emphasize the average price of stock trading in the 20 trading days before the pricing benchmark date = the total amount of stock trading in the 20 trading days before the pricing benchmark date/the total trading volume in the 20 trading days before the pricing benchmark date. It is not the sum of the daily closing price divided by 20. Under normal circumstances, the fixed price increase is about 20% of the existing stock price, and has a certain security mat.
However, everything has two sides, and the risk of investing in a fixed fund cannot be ignored.
The performance of the fund has not been optimistic since the beginning of the year. The reason is that the stock market continues to fluctuate, resulting in the listed company’s fixed price increase is lower than the stock price. For example, the implementation of the fixed increase of Wanshun shares in July last year, the issue price of 26.55 yuan, the latest price is only about 13 yuan, a drop of half, last year 6 Enhua Pharmaceutical, which is scheduled to increase in the month, has an issue price of 41.08 yuan. The latest price is only 21 yuan, and it has almost fallen by half. What is even worse is that the fixed-income fund has a closed period of more than one year, and investors who participate in the fixed-income fund Bring more uncertainty.
Then the problem is coming…
How to choose a fixed fund?
The recommendations can be examined in several ways:
1) Pay attention to the management capabilities of fund companies and fund managers, and observe the scale of their fixed-income funds and the ability to obtain quality projects;
2) Pay attention to the closed period of the fixed fund, and choose the fixed fund with shorter closing period to reduce the uncertainty of investment;
3) Pay attention to the issuance time of the fund and choose the stock market to be in the bottom period. When the valuation is reasonable, the intervention can create a better safety mat and reduce the investment risk.
How to buy a fixed fund? There are two ways, one is to participate in the subscription of the new fund, and the other is to wait for the fund to operate three months later to be listed on the exchange and buy through the form of on-floor transactions.
The new fund subscription is mainly through the selection of excellent fund companies and excellent fund managers, while the on-exchange transactions need to pay attention to the current net value of the fund and the quality of the fixed-income projects that have been obtained. If the net value of the fund is found to be lower than the issue price, and the increase will be increased. The overall project quality is relatively high and can be appropriately participated when the stock market is low. In contrast, unless you have a special trust in the manager’s ability, on-market trading is more reliable.
Finally, let’s summarize Investing in a fixed-income fund requires more choices.