To truly understand a fund, we should not just focus on understanding the fund’s net worth, historical performance and rankings. Truly understanding a fund can help us make quick judgments. If we want to fully understand a fund, we
You can start with the fund prospectus.
Speaking of the fund prospectus, there is a lot of text. Reading it word for word is very energy-consuming and unnecessary. We only need to find a few key points to understand.
First find "fund investments".
Usually in the eighth to tenth sections of the recruitment letter.
Take the E Fund consumer industry stock fund as an example to explain.
The investment goal is very important. This fund mainly invests in stocks in the consumer industry. Under the premise of strictly controlling risks, it pursues investment returns that exceed performance comparison benchmarks.
Investment scope: This fund is a stock fund. The investment proportion range is: stock assets account for 80%-95% of the fund assets. The market value of all warrants held by the fund shall not exceed 3% of the total net asset value of the fund. The fund retains cash and invests in
The total proportion of government bonds with maturities within one year shall not be less than 5% of the fund's net asset value. The proportion of the fund's investment in stocks of major consumer industries and optional consumer industries defined by the China Securities Index Company shall not be less than 95% of stock assets.
%.
Investment Philosophy This fund strives to achieve long-term stable appreciation of fund assets by investing in listed companies in the consumer industry with strong competitive advantages, seizing investment opportunities in the process of China's economic growth and residents' consumption upgrade.
From the above points, we can basically grasp the rhythm of the fund manager and understand the fund's investment direction, asset allocation ratio and investment style.
After combining the historical performance of the fund, if it is consistent with our needs, it can be included in the selection range.