At present, we cannot say this, because the fund companies are now relaxing the purchase restriction policy, not because they think the current market has stabilized, but because the current market is a bit cold, and many investors have been affected. There has been a retracement of about 20%. Under such conditions, many investors are redeeming their principal, and at the same time, not many investors are willing to continue to increase their positions. Therefore, many fund companies, in order to stabilize the entire market, do not Some so-called stampede events will relax the fund's purchase restriction policy. This purpose is actually very simple. It is mainly to stimulate the market and to stabilize investor confidence.

When the entire market rises, the mentality of investors is particularly relaxed at this time, and many investors are frantically adding positions. They always want to gain huge profits in this way, but the market cannot It has been rising, but now the market has fallen a lot. Investors are particularly flustered at this time because their positions are very heavy. Many friends are even full of positions. Many people have to cut their flesh and leave the market because their funds are not pure. With idle funds, some people have incurred substantial losses. Under such circumstances, many fund companies have relaxed purchase restrictions.

Fund companies relax purchase restrictions.

Let’s focus on relatively large fund products. Several tens of billions of fund products have significantly relaxed their so-called purchase restrictions. Some friends who are new to the investment market may not understand this behavior. In fact, this behavior is to stabilize the confidence of investors and prevent investors from panicking, because if investors are too nervous, they are likely to suffer from some problems at this time. Emotional issues cause market volatility.

Does this behavior mean that the fund market is stabilizing?

In the short term, it is impossible for the entire fund market to stabilize, because we have never seen the market retract so quickly. Friends, you can take a look at the trend in the past month. Basically, they have fallen sharply, but there has been no rebound. This situation is so rare that many friends are very panicked when they see this situation, thinking that it is not right now. We haven't reached the bottom yet. In my personal opinion, there is still room to continue to explore.

How to understand the behavior of relaxing purchase restrictions?

As I mentioned above, I think the main purpose of this behavior is to stabilize the investment market and to reassure investors. As for whether this behavior has any effect, in the short term It will definitely have a lot of stimulating effects, but in the long run, the current valuation of many companies is too high, and when the valuation is too high, it will eventually return to a normal value, so many people are not optimistic about the future. market conditions.