Since this year, there has been one new explosion fund after another. Tens of billions or even nearly 100 billion dollars of subscription capital are pouring in. Is it the appeal of performance, or is it the promotion of channels? A number of industry insiders said that various factors, such as market conditions, the aura of high-performing fund managers, and banking channels, etc., have contributed to the explosion of funds, while purchase restrictions have had the effect of hunger marketing, further boosting the fund's subscription scale.

There are frequent exploded funds due to multiple factors

Many fund industry insiders have summed up the generation of explosive funds as “the world, the place is favorable.” Tianshi, under the influence of the idea that “trading stocks is not as good as buying funds,” more investors agree that around 3,000 points is a good time for fund allocation; location is that the products come from high-performing fund companies, and star fund managers take responsibility; people and marketing are in place.

A person from a fund company in Beijing said that the issuance of new funds requires increased marketing investment and sufficient publicity. If the long-term performance of fund managers is good, fund companies do not need to spend too much on media publicity; what is important is to rely on bank channels to absorb funds. A medium-sized public funding marketer in Beijing gave an example. Recently, the issuance of a new fund by Hongde Fund has been booming. As a sub-new company, Hongde's marketing team is not strong; it has become a popular fund by relying on channels.

It is also essential for fund companies to publicize before the official sale. Take Guangfa Technology Pioneer as an example. Guangfa Fund announced the fund's sale announcement on January 10, and it will only go on sale for one day on January 17. On January 13, it began to push messages on the WeChat account of the Guangfa Fund, and on the day of the launch, the Guangfa Fund Wealth Account promoted 4 messages to broadcast the fundraising news live.

In addition to active marketing for fund companies, bank account managers have also contributed greatly. After the issuance schedule for the new fund is determined, the bank account manager will intensively promote it online and offline. An account manager at a state-owned bank told the reporter that two or three days before the product was released, channel managers began training and then advertised in the WeChat circle of friends.

A bank source in Beijing who has been engaged in fund sales for many years said that bank account managers have a strong ability to control customers; they will concentrate their clients' funds to launch new funds, introduce products to customers on the eve of product launch, and emphasize that they will be limited.

Banks are still the main producers of explosive funds

Since the beginning of the year, explosive funds that have sold out in one day have adopted purchase restrictions. Industry insiders interpret this as hunger marketing. Purchase restrictions are a win-win situation for fund companies and banking channels, and banks have also become the main drivers of exploding funds.

Industry insiders pointed out that the purchase restrictions have caused investors to have to increase their capital subscription in order to be able to buy the number of shares in the plan.

A bank employee told the reporter that the incentives for account managers are calculated based on confirmed shares. In order to increase revenue, account managers will actively guide customers to increase subscription fees. Under the restricted purchase model, the sales volume of explosive funds is getting higher and higher.

It is worth noting that the fund company will communicate with the channel to stop excessive marketing after learning that the explosive fund has exceeded the limit. According to industry sources, fund companies have advised channel parties to guide customers to buy other products after breaking through the limits of explosive funds that were sold out on a recent day. However, in order to prevent the loss of customers, banking channels, especially first-tier channels, will continue to be promoted.

A person from a fund company in Beijing said that the original purpose of the purchase restrictions was to facilitate management by fund managers. Currently, channels are particularly fond of purchase restrictions because purchase restrictions attract more capital. As far as channels are concerned, the product experience that requires a refund is not good, and purchase restrictions can tap the real investment strength of customers. For example, I only want to subscribe for 100,000, but in order to increase the confirmation ratio, it may be increased to 1 million. After the refund, the account manager has an opportunity to direct investors to buy other products.

Furthermore, banks' competition in fund sales has also boosted the size of exploding funds. The fund sales industry insider mentioned above said that some banks will cooperate with fund companies to generate hot money. Banks use explosive funds to establish their strong position in fund sales, then attract more star funds to choose their channel for launch, because it will be relatively easy for star fund managers to sell their products. The industry source revealed that the core of the Bank of China, which raised more than 50 billion dollars, was mainly contributed by the three major channels of the Bank of Exchange, CMB, and CCB. The Bank of Exchange and CMB each sold 20 billion dollars, while the main sales channel, CCB sold 8 billion dollars. Channel competition for customers has also become another important reason for the creation of explosive funds.