So as not to be too miserable in this year's rare plunge. After a round of reincarnation, Niu Xiong still earned 200%
. In the same way, many closed-end funds with 80% of the stock position in the contract have the highest performance in the past few years, which is not worse than those stock funds that can have 95% of the stock position. The maximum stock position stipulated in the fund contract can effectively control the human weakness of the fund manager and balance the investment, thus improving the long-term performance. Like some funds whose stock positions can be changed flexibly between 30% and 95%, in fact, most fund managers simply cannot effectively manage their positions according to the market. The fund whose stock position is about 75% stipulated in the contract actually plays a mechanical and compulsory rebalancing role between stock and bond cash, and is less dependent on the fund manager's trend prediction ability. As can also be seen from the table, in 2005, most equity-debt balance funds or bond funds achieved good returns. This is due to the skyrocketing national debt market in 2005. In the second and third quarters of this year, bonds rose sharply, reducing losses in the case of a sharp drop in stocks.
There are two special cases. One is the trend of China's market choice and industrial development, although the highest position of stocks is 95%
However, fund managers who trade are very experienced and can accurately predict market trends, operate bands or lighten positions. However, such achievements are hard to come by. We can see from the quarterly report that there are still many funds with stock positions above 90% in the first half of the year. It can be seen that it is not easy to make a suitable position change. The other is the Industrial Convertible Bond Fund. This is a very different fund, which mainly invests in convertible bonds. For convertible bonds, it has a very strong security function in the big bear market. Just like this year, even if the market bears again, once the price of convertible bonds falls near the value of pure debt, it will not go down and there will be dividends every year. In the bull market, the price of convertible bonds will also rise with the stock price, and they can be converted into stocks within the agreed time, enjoying the greater benefits brought by the stock market rise. It can be said that the dual characteristics of debt and equity of convertible bonds make its long-term performance so excellent.
From the above analysis, we can draw several conclusions: first, the highest position of 70-80% is the most reasonable in the long run, and its long-term performance is better than that of the stock fund with the highest position of 95%. This kind of fund, such as stock-debt balance fund and closed-end fund.
Second, the dual characteristics of convertible bonds have created excellent long-term performance of convertible bond funds. The typical representative is Xingye Convertible Bond, the only convertible bond fund in China market.
Third, even the Tian Li Bond Fund with the highest stock position of only 20% and the Southern Baoyuan Bond Fund with the highest stock position of 30% have achieved considerable long-term performance. This is suitable for risk-averse investors and the elderly.
Fourth, stock funds and index funds with higher positions are more suitable for short-term operation. If done well, the performance will be very good.