Investment funds are actually investment managers, because they trust his investor ability and give him hard money to take care of. We choose a fund manager mainly on the basis of his or her past performance. Therefore, many investment managers will make a historical performance table to show the portfolio they manage, that is, the fund products they manage. Through these materials, investors can have a clear understanding of the past performance of investment managers.
Survey 1: Investment experience of fund managers
We need to pay attention to the length of time that fund managers have been engaged in investment, whether their historical performance is stable and their attitude towards risks. Although the investment methods of fund managers are different, the principle of good long-term performance remains unchanged. In China, fund managers usually go through the work stage of researchers, and it takes a long way to transition from an excellent researcher to an excellent fund manager. Therefore, when paying attention to the work experience of fund managers, we should pay more attention to the experience of investment practice.
Survey 2: Investment Methods of Portfolio Construction
Although different fund investment strategies are limited to some extent by the terms of the fund contract, such as index investment or active investment, the allocation ratio of holding stocks, the style of investing in stocks, etc. Regardless of large-scale funds with flexible asset allocation, similar funds pursue relative returns, and there is more room for choosing industries and stocks. Their investment strategy is mainly reflected in the investment process, that is, the process of securities selection and portfolio construction.
There are also some funds that adopt the theme investment strategy, which is different from the industry investment that most investors are familiar with. When investors focus on the industry, the latter focuses on specific areas in the stock market. Although the investment principles are different, the ultimate goal of fund managers is to evaluate the value of enterprises, determine a reasonable value range and give them a certain weight in the portfolio.
Survey 3: Compare different management styles.
Investors can understand the differences in fund management styles from the aspects of industry, stock concentration and turnover rate. Some fund managers' portfolios are relatively scattered, while others are relatively concentrated, mainly because they have more confidence in the varieties they choose, hoping to achieve performance beyond the index through holding heavy positions.
As for the turnover rate, if fund managers change positions relatively frequently, their turnover rate will increase accordingly. In actual investment, some fund managers may make positive choices for large-scale asset allocation based on the consideration of risks, and the result is to improve the turnover rate of the portfolio, but some fund managers will pay more attention to selecting individual stocks. No matter which investment principle is adhered to, fund managers will always play their best investment methods.
Fund experts pointed out that we need to choose fund managers who have clear investment ideas, adhere to their own investment principles and have a high investment success rate in the process of historical management. In this way, in the future market environment where opportunities and challenges coexist, we can stick to it with more confidence.