Why is the success rate of retail investors in the primary market low?

Because the subscription funds of new shares generally far exceed the funds planned by newly listed companies, it is necessary to randomly allocate shares among all subscription funds to ensure the fairness of subscription. The Shanghai Stock Exchange stipulates that the subscription unit is 1 1,000 shares, and the subscription number of each account is not less than 1 1,000 shares, and the number exceeding 1 1,000 shares must be an integer multiple of 1 1,000 shares; The Shenzhen Stock Exchange stipulates that the subscription unit is 500 shares, and the subscription number of each account is not less than 500 shares. The number of shares exceeding 500 must be an integer multiple of 500 shares. Each valid ordering unit corresponds to a matching number. The winning number (that is, the winning applicant) is determined by random allocation. Then the ratio of winning units to the total number of effective units participating in the subscription is the winning rate of this subscription.

Winning rate = number of issued shares/number of valid subscribed shares * 100%

The winning rate is just like the winning rate in the lottery. Because there are many people who subscribe for new shares, but the number of issues is limited, it is impossible for everyone to have them, so the lottery is carried out. The subscription process is based on every 1000 shares, so every 1000 shares as a subscription unit will get a subscription number, and then a lottery will be drawn. Investors will compare the numbers and some will win lots. If they don't do this, they won't win. With the circulation (shares)/effective subscription (shares), the success rate of new share issuance will be obtained. The lower the winning percentage, the less likely it is to win.

Funds are different from new shares, and the issuance of new funds can be shared by everyone. The winning rate is calculated as above, assuming that the winning rate is 10%, then if you invest 10000, 1000, you can successfully purchase the fund, and so on.