We often hear on the news that the fund has a rat position. What's the matter? Does our index fund also have a rat position? Here is a brief explanation of the fund's mouse position.
It is possible for the rat storehouse to happen in active funds. For example, an active public offering fund wants to buy stock A, before buying, the fund manager first buys stock A with the money of relatives and friends, and then buys stock A with the money of the public offering fund. When A rises, the fund manager sells A in the stock account of relatives and friends to make a profit. This is a typical case of the rat warehouse. The fund manager uses the fund's funds to invest in stocks to pull Taiwan stocks and enrich his private pockets.
But rat positions don't happen in index funds Because index funds are passive investors, they choose stocks according to the rules of the index. The proportion of stocks to buy in advance is open and transparent, not determined by the fund manager. This is also a benefit of index funds, which eliminates many unnecessary risks. It is also an advantage for our ordinary investors to invest in index funds.
