Disadvantages: weak adaptability, unable to achieve short-term benefits.

Quantitative fund

Quantitative fund is based on the analysis of a large number of historical data, comprehensively considering various investment methods, and with the help of computer and data analysis, making investment decisions of an investment model suitable for the current market.

Its core is to control the risk through quantitative investment strategy, supplemented by active investment strategy, and obtain the excess return of the market under the controllable risk. Because quantitative funds guide investment through statistics and analysis of data, so as to evaluate the Excellence of potential investment targets, there will be clear discipline and efficiency. Firstly, the quantitative model can be used to collect and analyze data efficiently. Secondly, quantitative stock selection can ensure the objectivity of stock selection process, avoid randomness in human nature, reduce mistakes caused by subjective judgment, and make investment more rational. It chooses the investment portfolio through the combination of human brain and computer, and can establish the investment system on the basis of the model, which is also its greatest advantage.

In addition, quantitative funds break through the limitations of traditional and index investment, and can also become fixed-income fund products when the market is not good.

Shortcomings of quantitative funds

The resilience of quantitative funds is not strong. The structural similarity of quantitative fund model will directly affect the effectiveness and liquidity of the model. If the market changes suddenly, it will take some time for the quantitative fund to optimize the adjustment algorithm. The quantitative model is based on historical data, so its ability to absorb new information is slow.

Moreover, it is impossible to pursue high returns after adopting quantitative funds, which often focus on long-term performance. In other words, if the investor's goal is to pursue short-term gains, quantitative funds cannot achieve this goal. In addition, once the external environment changes or some major events occur, if the fundamentals change, its effectiveness is likely to be affected.