This year, the new fund issuance market has shown a trend of cooling down. According to the latest data, both the number and scale of new fund issuance have experienced a decline to varying degrees.

Recently, new funds under companies such as Minsheng Jia Yin and Peng Yang Fund have failed to raise funds.

However, there has always been a saying in the fund industry: "It's easy to perform well but hard to issue, and easy to issue but hard to perform well." The current difficulty in issuance actually indicates that this is the best stage for funds to achieve performance.

From another perspective, it is also a good time for investors to enter the market.

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Looking at the trend of newly issued funds in the past 12 months, the issuance volume of new funds in May this year was the lowest month since January this year, except for the Spring Festival.

And starting from March, it has been declining month by month. The share of new funds issued in May was only slightly over 70 billion, which was a 50% drop compared to March.

The market environment is one of the main reasons for the cooling down of new fund issuance.

Under the pressure of economic downturn, investors' awareness of market risks has gradually increased, and their enthusiasm for investing in new funds has decreased.

In addition, the fluctuations in the stock market have also affected investors' confidence in new funds.For fund companies, a slowdown in the issuance of new funds may lead to hindered business expansion and affect the company's profitability. After all, most of the income for public fund companies comes from management fees, which are closely related to the scale of the funds. Most of the time, the fastest way for fund companies to expand their scale is through the issuance of new funds. Now that this path is blocked, it naturally leads to slow growth in the management fee revenue of fund companies.

For investors, a slowdown in the issuance of new funds may reduce investment options and affect investment returns. However, looking at it from the opposite perspective, this also provides investors with better investment opportunities. Warren Buffett said, "Be greedy when others are fearful." How can we judge when others are fearful? When everyone is hesitant to invest, when the funds sold through banks are not selling well, and when more and more people are considering uninstalling apps related to funds, it is getting closer and closer to the peak of everyone's fear.

There are also many contrary examples. Looking back at the past, we found that in January 2021, the issuance of new funds reached a record high, which turned out to be the peak of the last small bull market. Now, the lukewarm fund issuance means that the market's sensitivity to risk has increased. At this time, investors should pay more attention to factors such as the fund's investment strategy, the experience and performance of the fund manager, etc.

In the past two years, when the performance of funds was good, it could be said that everyone was doing well, and every fund manager presented very impressive performance data, which was dazzling.But now is precisely an opportunity to re-examine the value of these fund managers.

Moreover, the investment enthusiasm for certain industries or sectors in the market has cooled down. As a result, neglected or undervalued industries or sectors will emerge as investment opportunities, which often possess high growth potential and investment value.

When these undervalued industries or sectors regain attention in the future, they will bring about certain investment opportunities, thereby increasing investment returns.

Friends with more investment experience must still remember that in 2018, the fund market often reported the failure of new fund raising, but looking back now, that was a market low.

Looking further back, in the first half of 2014, there were even occasional reports of fund industry personnel leaving their jobs, but in the second half of the year, a major bull market began.

Perhaps in two or three years, looking back now will be the best timing.

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In summary, the colder the fund issuance, the higher the future returns.

When fund issuance is lukewarm, market investors need to make investment decisions more rationally to avoid blind following and overinvestment issues.

At the same time, a lukewarm market will also bring investment opportunities in undervalued industries or sectors, thereby increasing investment returns.