Can I buy a champion fund?
In fact, it is not recommended that you buy a champion fund, because there is a saying in Public Offering of Fund that the fund that won the championship this year often has poor performance or even poor performance afterwards.
The reason why a fund can become a champion must be in the industry or sector with the best increase in that year, betting on a single track, hitting the hot spot of that year and winning the championship in one fell swoop. But this is often unsustainable, because the industry's way out will be greatly rotated. Moreover, the rotation between plates is very fast, and the plate with the highest increase today may become the bottom tomorrow.
This near-betting income is unsustainable. Even after careful investigation, it is difficult for fund managers to accurately grasp the market situation of industries or individual stocks under the condition that the market sector rotates so fast.
It is human nature for many investors to choose this kind of fund to invest. Generally speaking, they think that the probability of Excellence in the past will continue to be excellent. But the fact also proves that the champion fund can't bring excess returns. Therefore, individuals often emphasize that the knowledge of the historical performance of the fund as a reference cannot be the only criterion for us to choose the fund. Whether it is a champion fund or not, historical performance does not mean that everything is such a logic.
It is more difficult to invest in such a volatile stock market. So we'd better not be superstitious about the champion fund, but allocate it reasonably.