The common types of asset funds in the market are: partial stock funds, partial debt funds, absolute income funds, overseas equity asset funds, money funds, commodity futures funds and so on. However, the asset allocation fund portfolio is not simply a combination of these funds, and a good asset allocation fund portfolio is the same configuration.
Fund managers will balance different types of assets according to investment objectives, risk-return characteristics and keen sense of the market, so as to build a complete and suitable fund portfolio. For investors, how to choose the right combination from so many asset allocation fund portfolios in the market?
First, the establishment time.
The fund portfolio is too short to reflect the real strength of the fund manager. If the fund portfolio happens to encounter a bull market surge when it is established, the income of the fund portfolio will benefit from the rise of the market, but it cannot truly represent the real income of the fund portfolio.
Second, volatility.
The first thing to consider in investment is risk, and risk is always in the first place. From the data point of view, we all know that the return rate of equity funds is the highest, but why do so many people who buy equity funds lose money? Because stock funds fluctuate greatly and have high risk coefficient, ordinary people can't bear the risk of fluctuation. When the fund loses money, they stop for fear of losing more. This is the result of the mismatch between the selected investment varieties and their own risk tolerance. Therefore, only by choosing varieties suitable for your risk tolerance can you make rational investment.
From the perspective of risk return, the risk coefficients of various assets are stocks, commodities, bonds, cash and pure debt index funds from big to small. Make clear your risk tolerance, acceptable volatility and maximum withdrawal before investing. I also know that I need to choose the approximate asset allocation ratio of the corresponding fund portfolio.
Third, the risk-return ratio.
If the reasonable income expectation is too high and the fund portfolio can't reach it, it is easy to lose confidence in the investment process and give up the investment of the fund portfolio. In the case of high income expectation, we can only consider appropriately improving our risk tolerance in exchange for higher yield. In the case of similar asset structure, if the establishment time of fund portfolio is different, compare the Sharp ratio, the establishment time is similar, compare the annualized rate of return, and choose a better portfolio.
Fourth, the ability of managers.
The ability of the person in charge of managing the fund portfolio is also very important, because different people have different effects in managing the portfolio. By comparing the manager's ability to adjust the asset ratio, judge the market style, choose the base and choose the opportunity, we can get information through the manager's historical position adjustment, historical performance and remarks.