What is growth funds's growth funds ranking and what is growth funds? How's it going?
Characteristics of growth funds:
1, the growth fund pays more attention to the high growth of listed companies.
This kind of listed companies often have good development prospects, belonging to the sunrise industry, and the profit rate of the industry is much higher than the average level of other industries. Generally speaking, the Internet, biomedicine and other industries have good market prospects, so the stocks corresponding to these industries are favored by growth funds.
2. Different from value funds that focus on stable income.
Because they are particularly optimistic about listed companies with market prospects and growth, growth funds often choose higher positions in some industries they like while considering diversifying portfolio risks. Therefore, generally speaking, industry concentration and equity concentration are often high. (If you want to make money, you must look at the fund portfolio investment method! )
3. Growth fund is a high-risk and high-expectation annualized expected return product.
With the rise and fall of the market, the expected annualized expected return of growth investment funds fluctuates greatly. Some mature growth investment funds can achieve rapid growth in net value in bull market and show strong resilience in bear market. The fund that makes money in this way needs investors to find it after long-term research and observation.
Compared with other funds, growth funds:
Growth funds's investment target is mainly the common stock of emerging industries with growth. Compared with positive growth funds, growth funds are a bit conservative. This kind of fund mainly invests its assets in the common stock of companies with good credit standing, long-term surplus or bright development prospects. Long-term capital gains are the main source of expected annualized expected returns. Although the risk level is slightly lower than that of active growth funds, the net value fluctuates widely. Because the expected price of the stocks invested by this fund rises faster than that of the whole market price index, this kind of fund has great long-term capital appreciation potential.
The investment philosophy of the value fund is that the stock price may deviate from the intrinsic value of the stock in a heretical time, but in the long run, the stock price will definitely return to its intrinsic value and tend to be consistent. Therefore, the investment style of value funds is to buy stocks whose prices are lower than their intrinsic values, expecting the stock prices to return to a reasonable level. Compared with growth funds, the investment risk is lower. This kind of fund mainly chooses companies with mature and stable business model, small cash flow fluctuation and high dividend rate. Generally, the price-earnings ratio and price-to-book ratio of such companies are low, with small fluctuations and strong resilience. When the market falls, such funds can often play a role in stabilizing the market, but in a bull market, the expected annualized expected return is lower than that of growth funds.