guide long-term investing
Public offering pushes lock-up funds
◎Reporter He Yi
In order to actively respond to the call of “encouraging industry institutions to develop various types of fund products with a lock-up period”, fund companies have bucked the trend and deployed equity funds with a lock-up period. Huaxia Low Carbon Economy is held for one year, Ping An Balanced Growth is held for two years, Shenwanling Xinlerong is held for one year, and Dacheng Ingenuity is held for three years… A large number of equity funds with lock-up periods are being sold through major fund sales channels.
Industry insiders said that following the adjustment in the early stage, the optimistic factors of the A-share market have gradually accumulated. Optimistic regarding the development of the market outlook is the main reason for the public offering to actively deploy equity funds. Fund companies actively increase the distribution of products during the lock-up period, which is conducive to guiding the conversion of short-term funds into long-term funds, increasing the proportion of medium and long-term funds, and improving the investment experience of fund holders.
According to incomplete statistics, the number of equity funds currently being issued has reached 57, and there are 26 lock-up funds being promoted by large and medium-sized fund companies such as China Asset Management, Cathay Pacific Fund, Dacheng Fund, and Chuangjin Hexin Fund, accounting for nearly half. Among them, there are 22 holding period funds, covering equity funds with different durations such as one-year holding, two-year holding, and three-year holding; 4 closed operation funds, all of which are closed for one year.
The layout of lock-up funds is gradually becoming an industry consensus, and more and more lock-up funds are still on the way. According to incomplete statistics, fund companies including Bosera Fund, Lion Fund, Taiping Fund and other fund companies are actively applying for lock-up equity funds, the number of which is close to 50.
From the perspective of industry insiders, the current issuance of lock-up equity funds to encourage long-term investment behavior not only reflects the confidence of fund companies in their own equity investment capabilities, but also reflects their confidence in the long-term and stable development of China’s capital market.
Chuangjin Hexin Fund believes that setting a fund lock-up period can effectively prevent investors from chasing up and down and optimize customer investment experience; at the same time, the funds during the lock-up period are relatively stable, which is conducive to better long-term strategic planning by fund managers.
More importantly, the public offering of funds with a lock-up period can guide the market to turn to long-term investment. Dacheng Fund said that short-term operations and frequent transactions by individual investors are one of the important factors that lead to “the fund makes money and the basic people do not make money”, and it also restricts the growth of long-term funds. At present, public funds are pushing for lock-up equity funds, which are conducive to converting short-term funds into long-term funds.
