How to choose the basis is a concern of many investors. It can be considered comprehensively from three aspects. First, define your investment needs; Secondly, screen the fund varieties that meet the investment needs; Finally, make a configuration plan and execute it as planned. Today, Bian Xiao will share with you how to "choose one in a thousand" from the 7000+ fund for your reference only!

Clear investment demand

Defining investment needs requires us to answer the following questions, including:

1. "What is my investment income target?" For example, we hope to achieve an annualized investment income of 10%- 15%.

2. "How much fluctuation or loss can I bear?" For example, I can bear a floating loss of 30% at most.

3. "How long can I invest my funds?" For example, my funds can be invested for more than 1 year.

First of all, it is more important to clarify the above issues than to directly choose the basis. Only by knowing your risk preferences and investment needs first can you choose a fund that suits you.

Screening fund

Screening funds can be considered from three aspects: platform selection, product selection and fund manager selection.

1. Platform selection

Choosing a platform means choosing a fund company, which can be investigated from the aspects of management scale, investment and research team and product line.

Management scale

The management scale can reflect the management strength of fund companies to a certain extent, and the management ability exceeding the scale of 1000 billion is a good quantitative standard.

Investment team

If the investment and research team has a long working experience and years, the experience of this team is generally rich, and the wider research coverage can also reflect the investment and research strength of the company to a certain extent.

production line

If a fund company has a complete product line, it also proves that the comprehensive strength of this company is not low.

Select products

Choosing a product is choosing a specific fund. Mainly from the past performance, performance comparison, risk control ability, cost performance and other aspects to examine.

Past performance

By observing the short-term, medium-term and long-term performance of the fund, we can judge the performance of the fund in different time periods. In particular, we can observe the rising ability of funds in bull market and the ability to control withdrawal in bear market.

performance comparison

Based on the performance of the fund, it can also be compared with "benchmark" and "similar funds". Compared with the "benchmark", it can explain whether the performance of the fund in a specific interval can create excess returns; Compared with "similar funds", it can be explained whether the fund is outstanding in similar funds.

Wind power control capability

To evaluate whether a fund is good or not, in addition to looking at the rising ability, the risk control ability also needs attention. We can observe the fund's "volatility", "maximum withdrawal" and other indicators. The greater these two indicators, the greater the risk of the fund. You can compare the maximum withdrawal amount of the fund with the maximum loss you can accept, and try to choose the fund with the largest withdrawal amount within our tolerance.

Price–performance ratio

If a fund has strong rising ability and well controlled retracement, then it is a fund with relatively good cost performance. This cost performance ratio is what we usually call "Sharp ratio", which reflects the excess income that can be obtained by taking a unit risk. In the process of selecting the base, you can choose a fund with a relatively high Sharp ratio to invest.

3. Choose a fund manager

For choosing fund managers, we can examine them according to their work experience, investment style and past performance.

work experience

The general market is biased towards experienced fund managers, who have long working years and management years. These fund managers can refer to more adequate management performance.

Investment style

There are many places that can reflect the investment style of investment fund managers. For example, from their introduction and interviews, we can see whether they are partial to value or growth, whether they are pursuing absolute income or relative income, and whether they pay attention to position management and exit control. Through the quarterly and annual report data of the products they manage, we can also see their investment habits such as industry concentration, individual stock concentration and turnover rate.

Past performance

The past performance of fund managers is similar to that of selecting products, and they can also be evaluated in short-term, medium-term and long-term, and can also be compared horizontally and vertically.

Make a configuration plan

After selecting a certain number of target funds according to the above dimensions, you can make a configuration plan. This plan includes: the estimated amount of total investment, the setting of the allocation ratio of various funds, the expected buying method and the opening time.

For example, I plan to allocate 6,543,800 yuan. I must first consider the proportion of equity and fixed income funds, estimate how many times to buy and how long it will take to complete the opening. After making a plan, carry it out as planned.

In the past two years, the returns of funds purchased by many investors are generally unsatisfactory. What caused the large losses of most funds? Mars, an analyst at Shanghai Securities Fund Evaluation Center, pointed out that, first of all, the essence of fund products is the combination of securities, and the performance of fund income is closely related to the performance of the underlying market. In the continuous decline of the stock market, it is difficult for equity funds and hybrid funds, which mainly invest in stocks, to achieve positive returns. In the case of rising stock market, most partial stock funds can often achieve positive returns. Therefore, it is impossible for funds to create myths and create high positive returns in the continuous decline of the market in recent years.

From the long-term performance, in most cases, the overall performance of funds is better than that of individual investors, especially in bull markets and volatile markets. For example, in 2006 and 2007, more than 80% of equity funds achieved a return of more than 100%, while the proportion of individual investors was less than 20 12 years. Nearly 50% of equity funds have achieved a return of 5% to 30%. According to the survey, more than 50% of individual investors have lost between 5% and 50%. Therefore, the fund is still a good investment tool for individual investors to participate in the capital market.

All kinds of problems, whether China's stock market construction, economic development or asset management industry, can't be eliminated in a short time, and all need the rationality of the market as a whole to promote it. However, as investors themselves, we must measure our risk tolerance clearly and not blindly listen to the propaganda of sales staff. If your risk tolerance is weak, or the funds you want to use in the short term, you can't invest too much in a single stock fund to avoid being greatly affected by the risk of stock market fluctuations. Therefore, for individual investors, it is more meaningful to have a long-term investment mentality, choose appropriate fund products according to their own risk tolerance and renewal, avoid excessive pursuit of popular funds with outstanding short-term returns, pay more attention to funds with relatively stable long-term performance, and spread risks through fixed investment and portfolio allocation to obtain long-term stable returns.

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★ How do novices get started with the fund?

★ How about the wealth management fund of China Construction Bank?

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★ It is good for ordinary investors to buy a few funds.

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