under what circumstances can we consider changing the funds we hold?
the change of fund managers. for active equity funds, the dynamics of fund managers need our attention, because for active equity funds, investment funds are equivalent to investment fund managers, which is really not an exaggeration. Active equity funds mainly obtain excess returns through the excellent management of fund managers. If there is a change in the fund manager of the fund we hold, we need to pay attention to it. A good fund manager may turn the tide, and a bad fund may also make its performance plummet.
the change of fund scale. furthermore, the change of fund scale also needs to be paid attention to. every time the periodic report is disclosed, we need to pay attention to the change of fund scale. fund managers have their own ability circle and the fund scale they can control is limited. If the fund scale suddenly increases sharply, the management ability of fund managers will be required to be higher. If the fund scale does not match the management ability of fund managers, it may also lead to poor fund performance.
the change of fund investment style and the drift of fund investment style also need to be concerned. A mature fund manager has a very clear understanding of his own ability circle, and also has his own mature and stable investment style, which will not change easily. It is not easy to invest outside your own ability circle. If the investment style of the fund you hold now frequently deviates, you should be on your guard, which may be a sign that the fund manager's investment is immature.
If heavy stocks trample on thunder, a large number of investors may redeem the fund, which will cause great pressure on the cash flow of the fund, and the fund manager will be forced to sell assets with good liquidity to alleviate the redemption pressure, which may lead to a vicious circle.
the change of institutional positions is also very critical information. Institutional investors are relatively stable and professional investment forces, generally not in day trading. If the proportion of fund institutions you hold drops sharply, it is the withdrawal of institutional funds. It is possible that one of these institutions is not optimistic about the market outlook, and we need to further understand the reasons and make a judgment. If it is a passive fund, that is, an index fund, the standard of measurement will be somewhat different. Because index funds mainly obtain average returns by passively copying the index. We mainly look at the tracking error of the fund. If the tracking error is too large for a long time, we can choose to replace a better index fund. The long-term tracking error is too large, which is often caused by the position change brought by the redemption application, the fund manager needs to redeem other index stocks to ease the redemption pressure, the cash flow drag, and the fund manager's active operation. For tracking errors, please refer to the performance data of the information disclosure report fund. We also need to be cautious if the index-enhanced fund has no excess return or the excess return is unstable for a long time. After all, the index enhancement fund is a fund that can obtain part of the excess income on the basis of passive average income. If there is no excess return for a long time or the excess return is unstable, it is often a problem in the process of implementing the above strategies, so at this time, you can also consider changing to a better fund. I hope the above content is helpful to you.