Funds are designed and managed by fund management companies, so investors should know the background, financial resources, scale, reputation and management methods of fund management companies. Although fund assets will not suffer losses due to the rise and fall of fund management companies, whether the foundation of fund management companies is solid and whether the internal management system is perfect, especially the investment experience and professional quality of fund managers, management methods and the qualifications and experience of trustees, accountants and accountants, will all affect the performance of funds. Some fund portfolios are managed by a group of investment managers and analysts, while others are managed by one or two managers. The latter's personal factors are heavier, so when it comes to personnel changes, it will have a greater impact on the cohesive operation of the fund. Fund investment has a sound management system and fund companies that pay attention to collective management. Their decision-making procedures are often consistent and their actions are targeted. It is more reliable for investors to choose according to past performance. Therefore, when choosing a fund management company, funds managed by large investment institutions or financial institutions are more secure.
In addition to the background, history and experience of fund management companies, the investment philosophy of fund managers can not be ignored. The best fund management companies basically run well every year, or outperform competitors with the same conditions. Worst of all, novice investors are keen to buy stocks whose share prices have risen sharply in a very short time, so as to obtain bubble-like profits in the future market revaluation. Some fund management companies have their own investment ideas, which are very effective in the short term when the stock market is abnormal, but wise investors should not buy such funds. Choosing a fund management company is like trying to get good grades in other fields. Slow and steady can win, and only slow-paced sports can be slow and steady.