Over the past two years, I feel that for ordinary investors, investing in funds is likely to have better results than investing in stocks.

In order to give more convincing proof, I made several public fund portfolios last year.

On September 30, 2019, I established two public fund portfolios.

One is named "Forward 2019" combination, and the other is named "Steady Advance 2019" combination.

On October 10, 2019, an Anxin Liuliu combination was designed.

In the blink of an eye, it has been a full year, let's see how the results are.

Forward 2019 Portfolio As the name suggests, the Forward 2019 portfolio is a relatively active fund portfolio.

The goal I set at the beginning was this: Be optimistic about the long-term potential of China's securities market.

Combining value and growth, we mainly allocate actively managed funds at this stage.

In principle, do not operate at any time.

Only increase or decrease positions when the market is seriously overvalued.

The goal of the fund portfolio: strive to achieve an annualized rate of return of 20%.

And the retracement is smaller than the CSI 300 index benchmark.

As of September 30, 2020, the return rate of the Advance 2019 portfolio was 48.41%, with a maximum drawdown of 15.14%.

The Sharpe ratio is 2.39%.

To be honest, the absolute income of the Advance Portfolio in 2019 for the entire year is not amazing if it is placed among all the stock funds or partial stock funds in the market.

There are many funds that exceed this level of income.

But there are a few points here: First, the Forward 2019 portfolio I set up places equal emphasis on growth funds and value funds.

It is not a pure growth base, nor is it an industry theme base, such as medicine, consumption, technology, etc.

So the current level of income is very good.

If the market style changes in the next few years, this combination is still expected to exceed the market average.

Second, the portfolio pays more attention to the control of risk and return ratio.

The maximum drawdown of the portfolio is 15.14%, which occurred in March 2020.

Correspondingly, the CSI 300 Index fell 15% in March 2020.

The same retracement range, but the return is significantly higher than that of the CSI 300 Index.

The one-year return of the CSI 300 Index is 20.38%, and the excess return is 28%.

Third, the Sharpe ratio is very good.

The Sharpe ratio reflects the extent to which the growth rate of a fund's net value per unit of risk exceeds the risk-free rate of return.

The greater the Sharpe ratio, the higher the risk return obtained by the fund per unit of risk.

The Sharpe ratio of the forward portfolio is 2.39.

The Sharpe portfolio of a large number of funds may be around 1.

Of course, there are some areas for improvement in the Forward 2019 combination.

As the understanding of the fund further deepens, if you create a new portfolio, the risk-reward ratio of the portfolio will be better.

Under similar retracement conditions, there should be higher returns.

Or the same return can be achieved at a lower retracement level.

Stable Advance 2019 Combination Stable Advance 2019 Combination is a more stable combination than the Forward Combination.

The original goals were as follows: It is a stock and bond portfolio, and the portfolio strives to obtain ideal returns under relatively small drawdowns.

The stock-to-debt ratio is rebalanced every year.

It is more stable than the forward combination.

In principle, do not operate at any time.

Only when the market is obviously overvalued, position adjustments and management will be carried out.

One year later, as of September 30, 2020, the return rate of the Wenjin 2019 portfolio was 30.14%, the maximum drawdown was 8.83%, and the Sharpe ratio was 2.26%.

Steady inclusion in the 2019 portfolio, I am quite satisfied with the risk-return ratio in one year.

This combination is for stability.

Looking at the entire market, it should be very rare to achieve a 30% return, but a maximum drawdown of 8.8%.

On the market, the fund that can be compared is probably Guangfa Steady Growth.

GF Steady Growth is a very famous stock and bond portfolio fund managed by the famous general Fu Youxing. It can be said to be one of the best stocks and bond portfolio funds.

The risk-return ratios of the Wenjin 2019 portfolio and this fund are relatively similar.

The Wenjin 2019 portfolio has two advantages over Guangfa Steady Growth: First, a multi-fund portfolio usually has a stronger risk diversification effect than a single fund, and its performance will be more stable.

Second, Guangfa has grown steadily and its scale has grown rapidly, exceeding more than 10 billion. Whether it can maintain the previous rate of return in the future is a challenge.

The stable combination has no worries in this regard.

Similarly, Wenjin’s 2019 combination also has some areas worth improving.

According to my current understanding of funds, the risk-return ratio of the portfolio will be better.

Under similar retracements, there should be higher returns.

What I'm trying to say is that, over the long term, an annualized compound return of 20% is a pretty high return.