To put it another way, when we apply it to fund investment, we can also choose fund managers according to such criteria.
The importance of fund managers is self-evident, especially for active funds. The fund manager is the actual manager of the fund. It can be said that the performance of the fund depends almost entirely on the individual fund manager.
Although there is also the support of the investment research team behind the fund manager, the most important thing is the management ability of the fund manager. Excellent fund managers will bring good business performance to the fund and more benefits to investors.
Specifically, what criteria should we use to consider a fund manager?
1, strong ability to make money
For investors, fund managers who can help everyone make money are naturally excellent. Therefore, the most direct performance is that fund managers have good historical performance, and performance is the most convincing evidence.
Fund managers with good performance in the past may bring better returns to investors. Of course, the excellent performance mentioned here is worthy of long-term performance, not one or two quarters or six months.
Excellent short-term performance may just step on the cusp, or it may just be that the overall market is booming. The component of luck is relatively high. If the long-term performance is excellent, it can show that the fund manager has the ability to make money continuously.
2. Rich experience
Experience is very important in the investment market. The more you experience, the more market conditions you experience, and you will be more gentle and calm in the face of various emergencies and respond in time.
Only after experiencing the ups and downs of the market can we truly have awe of the market and respond more flexibly.
3. Pay attention to the investment style of fund managers.
When choosing a fund manager, we should also understand the fund manager's ability circle or his preferred style.
The investment style of the fund manager determines the investment decision of the fund manager, which can be understood through the information such as the manager of the fund manager, the manager who manages the fund, and the regular report of the managed fund.
Understand which industry or sector or type fund managers are better at and what their style preferences are.
At the same time, we should attach great importance to the stability index of investment style.
The stability of investment style shows that fund managers can stick to their own strategies and firmly believe in their own ideas.
Can also better carry forward and maintain their own advantages.
Investing in one's own ability circle, keeping an open mind and active learning attitude in areas where one is not good at, and not blindly following the trend are also the performance of an excellent fund manager.
4. Avoid fund managers who are inconsistent with their words and deeds.
When choosing fund managers, we should avoid the behavior of selling dog meat, and choose those fund managers who are consistent with their words and deeds. For example, if a fund manager insists on investing in value stocks, then the top ten awkward stocks in the funds he manages are generally value stocks.
We can also check the top ten positions of the fund through the regular reports of the fund, including quarterly reports, semi-annual reports and annual reports, among which the annual report is the most detailed.
5. Different types of funds match different fund managers.
There are different types of funds, and fund managers have the ability to circle different types of fund managers. A fund manager who is good at managing stock funds may not be able to manage index funds well.
This is because the roles of fund managers of different fund types are different. Some funds are less dependent on the fund manager, so even if the fund manager is changed, the impact is not great, while some funds have higher requirements for the fund manager.
For example, the index fund, which is a passive tracking index, is mainly responsible for minimizing tracking errors, and its work tends to be technical. The stock selection is very low.
I hope the above contents are helpful to you.