New troops of floating rate funds are gathering, and billions of funds are entering the market with full force.

As of June 24th, 13 of the first batch of 26 newly approved floating-rate funds have been established, with a total fundraising scale exceeding 12.6 billion yuan. Among them, the fundraising scales of Oriental Red Core Value, E Fund Growth Pioneer, and Ping An Value Premium all exceed 1 billion yuan. Industry institutions stated that the above-mentioned floating-rate funds use consistent tiered provision rules, implementing a "reward good, punish bad" mechanism, which can both constrain the performance of fund managers and share risks with investors through floating fees. Some fund managers believe that the new floating-rate funds adopt an asymmetric management fee rate incentive constraint mechanism, which requires fund managers to pay more attention to managing drawdowns and volatility, and more importantly, to have the ability to find good companies from the bottom up.