0 1 criteria for high-quality funds Different investors have different investment ideas and different criteria for judging the quality of funds, but for most investors, high-quality funds basically meet the following three criteria.
① Good performance.
Buying a fund is definitely to make money, and good performance is an essential standard for a high-quality fund.
"Good performance" can be mainly reflected by two indicators. One is historical performance. Historical performance can not be separated from the performance of the past year, but also needs to be combined with the performance of the past three years, five years or even since its establishment. The higher the historical performance, the better the fund. The second is retracement, which refers to the interval from the highest to the lowest net value of the fund in a period of time, which can explain the fund management team's ability to control the market. The lower the retracement, the more stable the fund is.
② Fund management team
A good fund management team is the soul of a quality fund.
Judging whether a fund management team can also have three indicators, one is the fund manager's work experience, whether he has rich investment experience, and at least one bull-bear cycle; The second is the average annualized rate of return of fund managers, which goes without saying. Naturally, the higher the better, indicating that the investment ability of fund managers is strong enough; The third is the stability of investment direction. We should know that people's energy is limited, and we can do better by focusing on a certain direction, such as small and medium-sized stocks, blue-chip stocks and white-horse stocks, instead of mixing all kinds of stocks.
③ Risk and reward
For active funds, it can be judged mainly by the ratio of income to risk. Revenue-to-risk ratio refers to how much revenue we can get under a unit risk. The full score is 10, and the higher the score, the better. For passive funds (index funds), we can judge the investment risk of this fund through fund valuation. The lower the fund valuation, the lower the risk.
Summary: the criteria for selecting high-quality funds mainly include three aspects: ① good performance can be judged by historical performance and withdrawal rate; ② The fund management team can judge from the fund manager's work experience, average annualized rate of return and the stability of investment direction; (3) Risks and benefits. Active funds can look at the risk-return ratio, and passive funds can be judged by fund valuation.
Why can active funds outperform the index significantly? Strictly speaking, this problem is not valid, because in the actual investment process, active funds often hope to outperform the index significantly in the bull market, while in the bear market, there are not many active funds that can outperform the index. Secondly, even in a bull market, some active funds can't outperform the index.
Of course, since it is to answer questions, here is mainly to answer the active funds that can outperform the index in the market. In fact, active funds can significantly outperform the index for two reasons.
① Self-adjustment of position
Active funds can adjust their positions independently. When the market goes up, the fund manager can adjust the position of stocks through his own judgment, choose stocks with rising potential to invest, and follow the market hotspots. If the fund manager is good enough, then this fund can often achieve good results.
The index is different. The index mainly reflects the overall market situation and has a relatively fixed compilation method. In other words, the selected stocks are relatively stable and will not change much according to the changes of market hotspots.
② Equity concentration.
If we analyze the funds with higher returns over the years, we will find that these funds have a more remarkable feature, that is, their holdings are relatively concentrated, which shows that the positions of a single stock are relatively heavy and their holdings are mainly concentrated in a certain sector.
When we set foot on hot spots in the market, these funds often get super-high returns, and because there are enough funds in the market and there are funds in all sectors, when we look at the returns, we will find that these active funds often have high returns, but if we look closely, we will find that the performance is often poor.
Summary: Not all active funds can significantly outperform the index, but some active funds can significantly outperform the index for two reasons. First, active funds can adjust their positions independently, and second, their holdings are relatively concentrated.
To sum up: the standard of high-quality fund: good performance, strong investment ability of management team and low risk; Active fund income can outperform the index because it can adjust positions independently and build positions centrally.