We ask a fund manager to perform in a bear market, that is, to lose less or even not. No one expects him to make a profit, or even make a fortune. This is the role of market background.
At this time, if we can judge the general direction of the market outlook, then the strategy of building a fund portfolio will be more targeted.
When judging that the market outlook is a bull market, choose products managed by fund managers with relatively radical style and excellent performance, or directly open index funds; If the market outlook is judged as a bear market, then historical performance has proved that fund managers who have performed well in at least two bear markets are worthy of our trust.
Although historical performance is not equal to future income, for active funds, if history cannot prove the ability of fund managers, then there is no more intuitive index to predict the ability of fund managers to obtain income in the future. Therefore, it is relatively objective to verify and judge the investment ability of fund managers through years of historical data.
In addition, when we face the past data, we should combine the historical background and add some specific considerations.
Some fund managers are good at actively creating profits beyond the broader market, and their performance is very high in the bull market, while some fund managers are good at defense, outstanding in the bear market and very good in risk control. There are also some fund managers who strike a balance between offensive and defensive, striving to make more money in the bull market and less losses in the bear market. The funds managed by these fund managers are also the most suitable targets for investors to track for a long time. At the same time, such products are also the best investment experience. Because as long as there are leading companies in the market, such fund managers are likely to find and fully share the company's growth income, then investors who buy other funds at various stages will still make money today even if they temporarily buy at the high point of the fund's net worth and insist on fixed investment.
Judging the general direction of the market plays a more prominent role in the period of market adjustment, because it is often the time to test active fund managers.
If you are in a state of loss, it will aggravate your anxiety. No one can avoid losing money. The same is true for fund managers, which will affect the trading status.
Fund managers whose performance underperforms the benchmark may even have the extreme situation of competing to hit the market and giving up on themselves. This time is also the touchstone to judge the ability of active fund managers.
I hope the above contents are helpful to you.