As the stock market stabilizes and rebounds, public funds have also begun to recover, both in terms of scale and income. At the same time, there is also good news for public funds, that is, the rate is going to be lowered again. Does this mean that public funds can be bought again?
In the past two years or so, the performance of public funds has not been satisfactory, and there have even been unprecedented losses for two consecutive years.
Among the worst performers are equity funds and hybrid funds that have a high correlation with the stock market. Although these two types of funds account for only about 23% of the scale of public funds, they have a great impact on the income of public funds. The reason why public funds have lost money for two consecutive years is that these two types of funds are the main culprits.
After the stock market rebounded, these two types of funds finally began to recover significantly. According to the data released by the Asset Management Association of China, the scale of stock funds and mixed funds increased by 724.3 billion yuan month-on-month in February, of which stock funds increased by 469.6 billion yuan and mixed funds increased by 254.7 billion yuan.
In addition to the size, the net unit value of both has also rebounded. Among them, the net unit value of equity funds rose by 16.8%, and the net unit value of mixed funds also increased by 8.9%, showing obvious signs of recovery.
When the scale and income began to rebound, there was good news from the public fund, that is, some fees are expected to be reduced. According to the latest regulations issued by the China Securities Regulatory Commission, from July 1, the commission rate of fund stock trading will be reduced, and the upper limit of the distribution ratio of fund managers' securities trading commissions will be reduced from 30% to 15%.
The reduction of these two rates is good for fund investors. Reducing the commission rate of fund stock trading can reduce the cost of fund investment in stocks, which is actually to save costs for fund investors.
Lowering the upper limit of the distribution ratio of fund managers' securities trading commissions can prevent the transfer of interests between fund companies and securities companies and protect the interests of investors.
This is not the first time that public funds have reduced fees, and before that, public funds have also lowered management fees and custody fees. After the fee reduction, it can save investors almost 20 billion yuan in costs every year.
So, is the public fund with a recovery in income and a decline in rates still worthy of trust?
Although the continued fee reduction of public funds is led by regulators, this is also a self-help for fund managers.
Due to the poor performance of the previous public fund, investors could not get a reasonable explanation for the doubts about the high level of the public fund and shorting themselves, resulting in doubts about the ability and professional ethics of the fund manager, and the trust of the fund among investors has dropped significantly. Even if returns pick up, it will still be difficult to launch new funds.
The fee reduction is to give investors profits, and I believe that fund managers must hope that through this move, investors can regain confidence in the fund.
It's just that such concessions, although it seems that fund managers have made a lot of sacrifices, for investors, I am afraid they will not care too much, because the impact of the reduction of the fee rate on the fund's income will not be very large.
For example, the management fee of the fund is reduced from 1.5% to 1.2%, which can save investors 0.3% of the cost.
Therefore, in order to completely restore investors' confidence in the fund, in addition to the outstanding performance of the fund manager, I am afraid that it is also necessary to effectively regulate the behavior of the fund manager to ensure that there is no harm to the interests of investors.