There are frequent fund explosion in new funds and fierce gold absorption of public funds. Behind this is the continuous high growth of performance of public funds since 2019. The median rate of return has rarely exceeded 35% for two consecutive years, with full profit making effect. According to the statistics of Zhongtai securities, the median return of all partial share public funds has reached 36.8%, which is the highest rate of return of public funds since 2010. Since the beginning of this year, 6 active equity funds have yielded more than 100%, and 49 funds (A and C shares are calculated separately) have increased their net worth by more than 80% within the year. In 2019, the median of partial equity funds will also reach 35%.
With the continuous amplification of the profit-making effect of public funds, the inflection point of residents asset allocation is coming, and the upsurge of raising funds is surging. Under the policy keynote of no speculation on housing and housing, the marginal attraction of real estate has declined, and the scale of non-standard financial management has shrunk. The risk-free rate of return has been declining year by year, and the return rate of Monetary Fund and bank financial management has been declining. The breaking of rigid cashing and the management of net worth have changed the traditional image of capital preservation. The scarcity of low-risk, high-yield assets urges residents to seek income through multiple channels, which lays the foundation for the continuous transfer of residents funds into the equity market. Driven by the significant profit-making effect of public funds, all kinds of funds swarmed into the fund issuance market, setting a number of records, and fund explosion has become a common occurrence.
The new trend of diffusion of residents asset allocation demand is providing new opportunities for institutional investors. The breadth and depth of capital market is gradually improved, accompanied by the increase of investment complexity and market efficiency. Institutional investors are more professional, have a wide range of social resources, and can provide a variety of advisory services. The increasing demand of investors seeking professional help in asset allocation is providing new opportunities for the growth and growth of institutional investors. Some fund managers who issued more than 30 billion yuan of fund products this year lamented to the author: investors are becoming mature, and borrowing funds into the market is deeply rooted in the hearts of the people.
The current economic shift to innovation driven and high-quality development requires a broad, deep and prosperous capital market. At the same time, the registration system has been comprehensively promoted, the capital market mechanism has been increasingly improved, and the attraction of equity assets has greatly increased. Driven by the long-term profit making effect, the changing trend of residents asset allocation and the continuous flow of long-term money into the market, the scale of 18 trillion may just be the prelude to the era of public offering.
Source: Ren Hui, editor in charge of China Securities Journal_ NBJ9607