What are the advantages of heavy position funds?

What are the advantages of heavy position funds_The meaning of heavy position funds

A heavy position fund means that the fund holds most of the circulating stocks of a listed company, which means that it is held in large quantities by large institutions and funds. invested stocks. The following is what the editor has compiled about the advantages of funds with heavy positions. Welcome to read!

What are the advantages of funds with heavy positions?

Funds with heavy positions refer to holding a small number of positions and occupying most of the funds in the entire investment portfolio. of funds. Heavy position funds have the following advantages:

High concentration: Heavy position funds invest in a small number of positions and can focus on market hot spots or individual stocks or industries with high growth potential. This can help increase portfolio returns and reduce the risks associated with diversification.

Profit opportunities: Funds with heavy positions can conduct more in-depth research and evaluation of their positions and capture profit opportunities for individual stocks. Fund managers can make investment decisions more confidently based on long-term tracking and understanding.

Active management: Funds with heavy positions usually adopt active management strategies. Fund managers can adjust the investment portfolio according to market conditions and their own judgment, look for better investment opportunities, and buy or sell positions in a timely manner.

What should be paid attention to during fund operation?

Risk control: Funds with heavy positions have relatively high risks due to their concentrated investment in a small number of positions. Fund managers need to carry out effective risk control, including assessment and monitoring of individual stock risks, as well as risk diversification and allocation management of the entire investment portfolio.

Diversified investment: Although funds with heavy positions focus on investing in a small number of positions, it is still recommended that fund managers conduct moderate diversification of investments to avoid excessive risk concentration caused by over-reliance on a single target.

Information disclosure and transparency: Fund management companies need to promptly and accurately disclose the fund's investment portfolio, operational strategies and other relevant information to investors in order to maintain transparency and compliance. This helps investors understand and make decisions about the fund.

Asset valuation: Fund managers should reasonably and accurately value each position of the investment portfolio to ensure that the net value is true and fair, and update the fund's net value information in a timely manner.

Investors should also carefully evaluate the ability of the fund manager, the strength of the fund company, the rationality of the investment strategy, etc. when choosing a heavy position fund to ensure that the fund can meet their own risk preferences and investment objectives. At the same time, investors also need to reasonably allocate funds based on their own circumstances and risk tolerance to avoid excessive concentration of risks.

The meaning of funds with heavy positions

The so-called funds with heavy positions refer to funds whose assets are concentrated in a certain sector or individual stocks. The sectors in which public funds have heavy positions reflect this to a certain extent. the current market hot spots. The fund's position details will be announced within fifteen trading days after the end of each quarter. At this time, investors can understand the assets that the fund holds heavily.

In fact, due to the high risk of stocks themselves, my country has clear regulations on the holdings of public funds. The regulations for funds holding individual stocks have the following two points:

1. If a fund holds the stocks of a listed company, its market value shall not exceed 10% of the fund's net asset value;

2 All funds managed by the same fund manager shall hold securities issued by a company and shall not exceed the value of the securities. 10%.

If the proportion of a certain stock held by the fund reaches the above requirements, the fund will sell a certain number of stocks to meet the requirements of the regulatory agency.

Characteristics of funds with heavy positions

A fund with heavy positions is actually a stock bought by a large-scale fund, and it is not a short-term investment. Therefore, it is generally in the hands of well-funded and top-ranked listed companies, and more than one fund company. Its market value accounts for more than 1/5 of the value of circulating stocks, which means that the fund holds more than 1/5 of the fund's heavy shares. . Another thing that everyone needs to pay attention to is that when the stock falls under the influence of the market, it is a great opportunity that investors should seize.

Next, let’s talk about the three characteristics of stocks in which funds hold heavy positions:

1. Fund companies also need to reduce the fund redemption value for their own profits and the company’s future development. , the fund's heavy positions will be increased at the end of each month or quarter. This is the time when everyone needs to pay careful attention

2. Fund holdings are becoming more and more popular in the market, and they are still held by listed companies with better development. Its development space in the future is quite good. At this time, it may encounter another problem, that is, things must be reversed at the extremes. Therefore, when its fund reaches a peak, it must retreat decisively in a timely manner.

3. The stock market is sometimes like a battlefield. The front line is unpredictable and uncontrollable. You must adapt to changes and prepare to retreat in time when the entire stock market falls. You must also pay careful attention and be cautious when the entire stock market rises. Buy.

What listed companies are heavily held by relevant funds?

As for the "collapse" risk of institutional group stocks, Yan Xiang, chief strategist of Guosen Securities, believes that in the current era of efficient information dissemination, institutions It’s normal to have highly consistent opinions about the company. In his view, whether the "grouping together" changes depends on the business cycle and has nothing to do with whether the "grouping together" itself. In fact, the fund's heavy holdings have been changing with changes in the economy.

Only 10 stocks have entered the top 100 stocks of the fund for five consecutive years. It can be described as an "iron-hard institution and a smooth group."

1. Simei Media: The stocks held by each fund issued by the fund company and the top ten shareholders of the stock.

2. Caesar Travel: As of March 31, 2019, the shareholding ratio of Shanghai Qiyin Equity Investment Fund Management Co., Ltd.-Shanghai Tongmei Qiyin Investment Management Center (Limited Partnership) was 0.99%.

3. Huicheng Technology: The stocks held by various funds issued by the fund company and the top ten shareholders of the stock.

4. Xinjiang Zhonghe: As of March 31, 2019, the shareholding ratio of Bank of Communications Co., Ltd.-Changxin Quantitative Pioneer Hybrid Securities Investment Fund was 0.4874%, and China Construction Bank Co., Ltd.-Boshi The CSI Gold Rush Big Data 100 Index Securities Investment Fund holds a shareholding ratio of 0.2582%, and the Bank of Communications Co., Ltd.-Changxin Quantitative Small and Medium Cap Equity Securities Investment Fund holds a shareholding ratio of 0.2351%.