"Home subsidy" activities into the third phase of the hidden trigger price war risk

There is a huge controversy, since yesterday, a third party fund sales website "Home subsidy" activities into the third phase, according to the rules of activity, the first time in the network trading fund investors will receive the actual purchase fee and future redemption fee of the sum of 20% as a subsidy. In the first activity, the amount of subsidy is the sum of all actual and future redemption fees.

The site has broken down over the years the lowest 0.6% of this subscription rate industry bottom line, and even may be "pay". At the same time, a number of fund companies in the direct marketing channel to reduce the purchase rate to 10 percent. Analysts believe that the seemingly unreasonable business behavior behind, is the electricity and fund companies eager to get rid of the banks in the fund's retail channels of a single big situation, they want to gain more say power. But this bold marketing approach, but also hidden the risk of triggering a price war.

Sale Fund

The site's "home subsidy" only for new customers, the first time through the site to buy funds investors, after completing a questionnaire, the fund's redemption fee will be returned by the website through the virtual currency of the website. There are three periods of activity, each of which is the sum of redemption fees, 60% of the total redemption and 20% of the total redemption.

The site's customer service staff, for example, if investors invest 100,000 yuan a stock base, the purchase rate of 0.6%, redemption rate of 0.5%, the total redemption fee of 1093 yuan. The successful transaction will be filled with 1093 net currency in the investor account. 1 Net currency equivalent to 1 yuan, after the account can be exchanged for such as money funds and other types of prizes.

In other words, the site will subsidize up to 1.1% of the total redemption fee to investors, while the current Third-party sales from the fund company's trailing commission ratio, a higher level of management fees (1.5%) of 60% to 70%, that is, 0.9% to 1.05%. If this is the case, the website will have to put up money to sell funds.

Prior to this, the Fund (blog, Weibo) in its official online direct marketing system to open some of the fund products back-end charging mode, the stock base requisition fee of less than one year is 0.2%, the debt base is 0.1%, almost 10 percent to 20 percent, the holding period is between 1-3 years, and the base debt is reduced to 0.1% and 0.05% respectively; No purchase fee will be charged for more than 3 years.

In addition, Yifangda, Peng Hua, rich countries and other fund companies, also in their online direct marketing system launched the subscription rate concessions, the minimum purchase rate can be preferential to 10 percent, individual fund concessions after the purchase rate is only 0.05%, far lower than the previous 0.6% of the rules.

Fight for the right of speech

The decline in the fund's sales rate is largely the result of deregulation in the regulatory layer. In order to prevent vicious competition, the old version of the new Fund Law stipulates that the minimum discount of the fund subscription rate for the sales channel is 40 percent, and the new fund law and related policies cancel the restriction.

Traditionally, banks have monopolized the vast majority of the fund's retail market, customer information is also in the hands of the bank, the fund company relatively passive, such as banks to encourage investors to redeem, fund companies have no countermeasures. Fund companies Online marketing, Third-party sales agencies in the tariff increase in the intensity, the purpose is to master more customer information, from the bank to gain more market voice power.

Alipay launched the "Balance Treasure" of the success, gave the electrical business great confidence, these third-party agencies hope to discount the sales rate to open the market of electronic business finance. For fund companies, because the money-making effect is getting weaker, the fund is becoming more and more marginalized in the products that investors can choose, and they need to use some direct means to stimulate sales.

However, although the new fund law and supporting rules to abolish the minimum 40 percent of the purchase rate limit, but the latest version of the provisions to be formally implemented until August 1, the fund companies and the electricity dealers are now a substantial price reduction, it is inevitable to give people the pretext.

Moreover, the new version of the 14th article points out that the fund sales organizations in the fund sales activities, not to crowd out competitors for the purpose, to depress the fund's fees, or to take lottery, kickbacks or send in-kind, insurance (assured), the share of funds and other means of sales funds.

Some analysts said that very low rates for investors to attract short-term stimulus, but this violation of business logic can not be sustained, once the industry followed by the same or even vicious competition, investors will not be guaranteed service, the sacrifice of their long-term interests.