Absolute return strategy is a very attractive word, but most investors still don't know what absolute return strategy is.

Relative to the pursuit of relative return beyond the benchmark, absolute return is committed to strictly controlling the exit and fluctuation of portfolio, striving for positive portfolio return by controlling risks, and pursuing steady growth of net worth.

The value of absolute return strategy

As far as most investors' financial demands are concerned, the overall income is still slightly higher, but the fluctuation must be relatively small.

Absolute return strategy products are products that can meet the needs of ordinary investors. Absolute return strategy products can make investors feel at ease in investing, instead of fluctuating with the market every day. In the case of paying attention to the market every day, the investment mentality is also easy to become particularly anxious. Fund product holders with absolute return strategy will have a better investment experience.

How to realize absolute income

What kind of strategy should be adopted to realize the absolute income of products?

In order to achieve the goal of absolute return, there are five aspects that need attention. First, pay attention to the comparison of assets, industries and individual stocks or securities; Second, pay attention to the cost performance of asset allocation. No matter what kind of assets are configured, it is most important to pay attention to their cost performance. Thirdly, pay attention to the control of exit, which is a very obvious feature of absolute income products and will also have a great impact on the sense of investment experience; Fourth, when paying attention to the certainty of income and making absolute income, we must consider the certainty of income when allocating a certain type of assets; Fifth, pay attention to the compound interest effect.

How to allocate large-scale assets

There are many products with absolute return strategy in the fund market. We take one of them as an example to understand the asset allocation characteristics of absolute income products.

Take the Bank of China multi-strategy hybrid fund of Bank of China Fund as an example.

Li Jian, the fund manager who manages the fund, said: "First of all, at the beginning of each year, we will determine the expected annual rate of return and the target annual rate of return of an absolute return strategy fund according to the market conditions at that time, including the prospect of the whole capital market in that year. (Draw up the expected rate of return according to market conditions)

Then push back to each type of assets that can be matched according to the expected target annual rate of return, and then predict what kind of returns such assets may provide according to the logic behind such assets, as well as possible opportunities and risks.

The most important thing is that the company has a relatively formed system in the allocation of large-scale assets.

We hold a large-scale asset allocation meeting every quarter. At the beginning of each quarter, at this meeting, all fund managers and macro-strategy teams, including stocks and fixed income, will conduct in-depth analysis and outlook on the major assets of this quarter.

At the same time, according to their own investment practice, fund managers also expressed some views and discussions on the allocation of large-scale assets in this quarter, and finally formed a relatively in-depth report on the allocation of large-scale assets, which played a very important guiding role in the fund management of the whole company.

Then under this framework, we go back and update every month, and our absolute income strategy fund makes some adjustments to our daily strategy according to this situation. "

I hope the above contents are helpful to you.