There are more and more new funds listed on the market, and the increase in the number of funds provides investors with a broad choice space. The advantage of the new fund lies in the low subscription rate. Recently, Warburg Fund released a new fund, which is Warburg Competitive Advantage Hybrid Fund. What about this fund?

What do you want from Warburg Competitive Advantage Hybrid Fund?

For a new fund, we should make a preliminary understanding from the aspects of risk-return characteristics, investment strategy and past performance of fund managers.

1 characteristics of risk and return: the fund is a hybrid fund with active investment, and its long-term average expected risk and expected return are lower than those of equity funds, but higher than those of bond funds and money market funds. The Fund can invest in Hong Kong listed stocks through the Hong Kong Stock Connect mechanism, and may also face unique risks brought by differences in investment environment, investment targets, market system and trading rules under the Hong Kong Stock Connect mechanism.

2 Investment strategy: In terms of stock investment strategy, the Fund selects outstanding enterprises with long-term competitive advantages to realize the stable appreciation of the fund assets. Listed companies with competitive advantages referred to in the Fund refer to companies that can maintain their competitive advantages for a long time due to high entry threshold or core competitiveness in operational efficiency and corporate governance, mainly including the following aspects:

The company has outstanding R&D and innovation ability, cost advantage, industry leading position, monopoly advantage or resource scarcity, and outstanding brand influence.

3 Fund Manager: Mr. Ceng Hao: Master, former executive director and chief analyst of CITIC Securities Co., Ltd., started as the fund manager of Huabao Advanced Growth Hybrid Fund on 20 17- 12-27, and started as the fund manager of Huabao Research Select Hybrid Fund on 26 August 2020, 2020- 165438.