Category: Money tips Release Date: 2006-04-29
Yesterday morning the first closed-end funds launched in the market amid a lack of hot spots was a bright star. Closed-end fund premium is generally serious the overall strength of the important reasons. As of last weekend, Tie Shuilv fund of over 40% have 25, nearly half of the total closed-end funds. Yesterday, leading the fund closed-end funds led the Tie Shuishuai Hanxing up 47.56%. Although a certain degree of closed-end fund discount is the kinds of a normal phenomenon in developed markets like the United States is no exception, but the average closed-end funds in these areas Tieshui Lv 10% to 20%, much lower than China's current 30 % of the average Tieshui Lv. Since the second half of this year, closed-end funds to rebound strongly, indicating the value of its investment has been a market capitalization of attention. We believe that investing in closed-end funds should pay attention to the following four areas:
First, pay attention to selecting a high discount Fund. Proposes to invest in closed-end fund, attention to severe oversold, high-worse resale values and prices of the funds at very low prices, in particular, the long-term target rate of deviation from a larger deviation from the price a serious departure from the value, there is a strong compensatory growth requirements of fund products. Relatively speaking, the worse resale values higher than the worse resale values of the fund of funds with low investment value of more, because the Fund's investment returns will depend largely on its worse resale values, worse resale values the larger the fund, the value of the return of space is also a corresponding greater. And such a high discount of funds are also more likely to be a market capitalization of phase, thus becoming the short-term "dark horse."
Second, note that the Fund's profitability. The Fund's profitability was mainly observed the following factors: whether the standardized management of the Fund's management are reasonable; whether the Fund's historical performance over a longer period of time to maintain excellent; fund manager investment philosophy is forward-looking; the Fund's holdings species whether it is reasonable and so forth.
Third, attention to the selection duration will end fund. In recent years small-cap funds will be due more susceptible to institutional financial concerns. According to statistics, December 31, 2007 expiration of the Fund for a total of 19 species, of which Societe Generale will be the fund as early as November 14, 2006 expiration. Duration to wait until the end of the Fund, there is a relatively fixed rate of return. Investors can these 19 funds as a bond to buy, if converted to rate of return, it will far exceed the interest rate of deposits and bonds in general.
Fourth, pay attention to short-term band operation. The advantages of closed-end funds do not stamp duty, transaction costs low, which is very suitable for short-term band operation. If it is short-term band operation of closed-end funds, it should focus on small-circulation share of the fund, fried small-cap funds are closed-end fund section of the laws of eternity, small-cap active funds and speculative space outperform funds, Among them, shares in circulation not more than 10 million copies of the more deserving of promising small-cap funds.
From yesterday, the fund trend analysis, in addition to leading the fund Hanxing species other than the remaining funds are to stay longer in the K line on the shadow line, said pressure on a larger plate on the block some sort of relief. Again from the historical trend analysis of closed-end funds often occur faster or slower rise of the market, a rebound is often heavy volume when the hitch, but once built will head into a long bear on the way later. This reflects the market capitalization of no long-term investment fund as a species, but rather as a short-term investments in the fund when a serious premium for short-term quick surprise attack, which is very consistent with the operation of customary hot money, investors This law is to be given particular attention.
