As of the end of the first quarter of 2021, a total of 404 funds have been established in 2021 , raising funds of 1,055.036 billion yuan, while the scale of newly established funds in the same period last year was less than 600 billion yuan, a year-on-year increase of 95%.
There are many newly established funds and many excellent old funds. What kind of funds should investors buy? What are their respective advantages and disadvantages?
First, let’s talk about misconceptions about old and new funds. For example, the net value of an old fund is 1.320, and we say that each fund share is 1.32 yuan. Compared with the net value of the new fund , the old fund is more expensive, that is, the same 1 million can only buy 757,500 old funds, while the new fund can buy 1 million. It doesn’t seem controversial!
Can the NAV per unit of the fund reflect the price per share? The answer is no, the price per share is determined by the market, there is a market for buying and selling, and the relationship between supply and demand determines the price; the NAV of the fund is determined by the management ability of the fund manager . Buying low and selling high allows the fund to make money and make NAV look good. This requires fund managers to have professional capabilities such as long-term research, layout, position adjustment, risk control, etc., which directly determines the expression of the fund’s net value.
Two funds can compare net worth, but not price. It is not a concept and cannot be compared as such.
Whether it is a new fund or an old fund, the number of stocks you buy ultimately determines whether you make money or not is the management ability of the fund manager, which has nothing to do with the net worth at this time. Even if you buy an old fund, the future trend of the fund’s NAV is related to you. The previous net worth is the net worth of the old investor. Since you bought it, your net worth is still 1.
Therefore, there is no essential difference between the pros and cons of the old and new funds. The difference is that compared with the old fund, the cost of the new fund is 3-6 months. During this period, positions in new funds are typically relatively low. If the market situation is good, the new fund may miss the gains brought by the market rise; the new fund also has no historical performance for reference, and investors can only refer to the past performance of the fund manager; the new fund also has its advantages. For example, with the advent of the bear market, the position of the new fund is relatively small, “the boat is easy to turn around”, and the risk is smaller than that of the old fund.