When choosing stocks, managers need to consider many factors, such as company valuation, financial status, profitability, business model and so on. At the same time, fund managers also need to comprehensively judge the investment value of individual stocks in combination with factors such as industry and market trends. Different funds have different investment styles, and stock selection will also have different tendencies.
The efficiency and accuracy of fund stock selection are directly related to the performance of fund income. Accurate stock selection can adjust the portfolio allocation when the market changes greatly, thus optimizing the risk-return ratio. Therefore, fund managers need to track market trends and changes in individual stocks and make appropriate adjustments according to their portfolios. Simply put, fund stock selection is a demonstration of comprehensive ability, which needs to involve the application of knowledge and skills such as financial analysis, market forecast and industry research.