Absolute income funds can flexibly capture opportunities in fixed income, equity and other fields under the premise of strictly controlling exit, and obtain relatively high return on investment, which naturally becomes an important choice for wealth management funds. Bian Xiao sorted out how to choose the absolute income fund here for your reference. I hope everyone will gain something in the reading process!
Compared with the high volatility characteristics of traditional stock funds, funds with absolute returns as the goal may bring better holding experience, which is suitable for investors with low risk appetite and ballast funds that contribute stable returns in the portfolio.
Broadly speaking, absolute income funds can be roughly divided into four categories: fixed income, secondary debt base, flexible allocation funds and quantitative hedge funds.
Fixed income class
Generally speaking, pure fixed income funds can be regarded as absolute income funds.
However, there are differences in the same kind of fixed income. According to the risk from low to high (and the expected rate of return from low to high), they are money fund, short-term debt fund and medium-and long-term debt fund respectively.
The "fixed income plus" strategic fund is a kind of partial debt with relatively low risk, but it is equipped with additional risky assets, which are basically the allocation modes of "fixed income plus stocks", "fixed income plus convertible bonds" and "fixed income plus innovation".
The income of such funds is generally higher than that of wealth management products, with an annualized rate of more than 6%; Generally speaking, the maximum annual retirement is within 3%; Because of the enhancement effect, such funds generally have stock positions, unless the fund manager actively reduces the stock position to zero in individual periods, but there are also historical stock positions.
"Fixed income+"is mainly to meet the investment needs of low-risk preference, and the stability and sustainability of income are more important. When screening, we can examine it from the dimensions of income characteristics, exit control and fund manager's strength.
1, the yield curve is stable and upward, and the retracement control ability is strong.
The strategy of "fixed income+"is to pursue steady income under the premise of strictly controlling retracement, and will not bear too many extra risks for short-term ranking. The yield curve of this product is stable and upward with little fluctuation. Excellent products often strive for positive returns every year. For example, in the unilateral decline of 20 18, products that can achieve positive returns are very worthy of attention.
2. The fund manager's ability to allocate large-scale assets and the ability to obtain excess returns from various assets.
Fund managers should have strong fixed-income investment strength to obtain stable coupon returns for their portfolios, and also be able to launch an "attack" in the bond bull market to obtain excess returns; It also needs to go through many rounds of reincarnation of stocks, debts, bulls and bears, with rich investment experience and expanding ability circle, and can grasp strategies such as stock selection, innovation, convertible bonds, fixed increase, futures and quantitative hedging.
3. Fund companies can provide strong platform support.
The scientific component in the operation of "fixed income+"products is greater than artistry, involving a variety of assets and emphasizing teamwork. Fund companies need to have a sound risk control system and a rigorous investment process, correct deviations and blind spots in portfolio management in time, and strictly control withdrawal; It is also necessary to have a professional team to conduct in-depth research on various assets and provide comprehensive support for fund managers.
Generally speaking, under the current unstable market environment of stock market volatility and bond decline, the offensive and defensive attributes of "fixed income+"funds are more in line with stable investors. Friends who haven't found a suitable investment target can learn about it. The first essence of "fixed income plus" strategic products is the pursuit of stability. When choosing products, we should combine the product income, the ability to control withdrawal and the management level of fund managers.
Subordinated debt base
The second category is the secondary debt base that can partially invest in stocks, such as ICBC double interest bonds and E Fund's stable income bonds, as well as Bosera credit bonds and E Fund's reassuring return bonds, which are called the strongest secondary bonds.
The advantage of secondary debt base is that it is more aggressive than pure debt fund and can increase income; Compared with partial stock funds, the performance fluctuation is lower, that is, "the shock can be defended and the bull market can be attacked", which can provide investors with a more comfortable investment experience and at the same time give considerable steady income.
On the one hand, the secondary debt base can greatly exceed the income of pure debt assets, on the other hand, it can maintain a small fluctuation range in most cases, and the attribute of "salt is sweet" is beyond doubt. The reason is that, apart from the basic characteristics of long-term hedging of stocks and bonds, as managers of hybrid secondary debt-based funds, most of them are awed by fluctuations, do not bet on the future trend of the market, and do not make certain style judgments. On the one hand, they pay more attention to safety in the allocation of large-scale assets and the mining of low-valued assets, on the other hand, they will put stop loss in a more important position in operation.
In addition, such products usually rely on stocks to increase their income, and the absolute income from stock investment is also the focus. Therefore, it can be seen that many "fixed income+"products adopt the dual fund manager system, one is responsible for bonds and the other is responsible for stocks. Of course, there are also a few excellent fund managers who hold two positions and pay attention to stocks and bonds. For example, Yu He, the fund manager of Wells Fargo Fund, is two atypical bond fund managers who are "double-repairing stocks and debts". They also set foot in the stock market and futures market. It is understood that when they invest, they will not only refer to economic data such as PMI at the macro level, but also refer to finance and commodity futures of listed companies at the micro level.
To sum up, the secondary debt gene has the product advantage of the main debt and the secondary stock, and is expected to enjoy the rising dividend in the stock bond market, with the risk and return between the stock fund and the money fund. At the same time, with the help of the stable trend of the bond market and the stable market of the stock market, it may be a good choice to allocate the secondary debt base in the volatile market.
Flexible allocation fund
The third category is flexible allocation funds with absolute income as the goal, such as Guangfa trend optimization, Anxin steady value-added, and Changan credit enhancement hybrid.
There are also many flexible funds in the market. How to choose them?
1, depending on performance, long-term excellent performance is the first choice. 2. Look at the fund manager. The fund manager is the soul of a fund. With so many funds, there must be many fund managers. Choosing a fund manager will give priority to working for more than 3 years.
Being able to work 10 years or more is even more awesome. At present, there are 48 fund managers who have worked in the whole market for more than 10 years, and only 4 fund managers exceed the fund return of 10% every year. They are Zhu Shaoxing, Dong, Cao Mingchang and Zhou Weiwen.
Through these two conditions, we can easily choose high-quality flexible allocation hybrid funds. For the most stable investors, flexible allocation of hybrid funds is a good choice.
Quantitative hedge fund
The fourth category is quantitative hedge funds, such as Haifutong Alpha Hedging and Huitianfu Absolute Return Strategy.
Quantitative hedge funds have the following characteristics:
1, with wide investment scope. Stocks, bonds, futures and commodities can all be used as investment targets, and the investment strategy is flexible.
2. Low correlation with major market indexes. Weakening the negative impact of systemic risk on investment, no matter whether the stock market is up or down, there are theoretically ways to make profits and obtain absolute returns.
3. Better risk-adjusted income. Take the market-neutral strategy as an example, its return rate is equivalent to the stock index, its volatility is similar to the bond index, and its risk-adjusted return level is much higher than the stock and bond indexes.
As for quantifying whether hedge funds can really achieve absolute returns, it is closely related to the operational level of fund managers. Generally speaking, the income sources of quantitative hedge funds mainly come from three aspects: one is to optimize fixed-income products, the other is to play new shares, and the third is the excess income obtained by selected stocks through stock index futures to hedge systemic risks. Judging from such products that have been issued, the market-neutral strategy is basically adopted: at the same time, long and short positions are constructed to hedge market risks. Market neutrality strategy is not prominent in bull market, but it shows high superiority in bear market, far outperforming other types of hedge funds. So in theory, the probability of quantifying the absolute return of hedge funds is still very large.
Mass investors point out that the advantage of quantitative hedging strategy lies in stripping market risk through hedging means, and then obtaining pure alpha income, which is a better investment tool choice in low interest rate environment. However, public offering hedging products are subject to strong product contracts, so investors should choose carefully according to their own risk preferences and by examining the volatility of products and other factors.
Different from general funds, the layout of absolute income funds needs to focus on sharp ratio and maximum retracement. The higher the sharp ratio, the better, and the lower the maximum withdrawal.
From the perspective of financial management substitution, the first category is mostly over-defense, with slightly insufficient income, and the second category is mostly good but slightly insufficient defense. On the contrary, the third and fourth categories seem to be more able to cross the bulls and bears, and investors can focus on them.
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