Enlightenment Analysis of the Great Retreat of Star Fund

Enlightenment Analysis of the Great Retreat of Star Fund

With the return of the valuation of the "core assets" of popular track, the net value of many star stock funds has generally adjusted sharply recently. So what should we do in the face of this situation? Bian Xiao compiled the enlightenment of the Great Retreat of Star Fund here for your reference. I hope you get something from reading!

Don't deify or demonize fund managers.

When the net value of the fund rose sharply, many star fund managers were subsequently "banned". The fund manager's "touch the stone into gold" has become the "god of wealth loves beans" of the people, and countless people rushed into the market with slogans such as "Kun Kun flies bravely and ikun will always follow". With the sudden change of "painting style" after the Spring Festival, the net value of many star funds has fallen sharply, and their dreams have been shattered. Top fund managers seem to have become sinners in a blink of an eye.

Fund managers are people, not gods, nor "love beans", nor monsters. Excellent fund managers can really build their own ability circle through long-term unremitting efforts, have a deeper understanding and cognition of some companies and industries, and make a more accurate judgment of the company's long-term performance in the future than others, thus obtaining excess returns. But the capital market is unpredictable, and no one can guarantee that fund managers will make money forever. Whether pursuing "deification" or "demonization", noise and pressure will interfere with the normal judgment and operation of fund managers. Therefore, while trusting the professional ability and integrity of fund managers, don't blindly worship or demonize them.

Don't judge heroes by their short-term performance.

Even if it is managed by an excellent fund manager, the performance of the fund will not rise linearly, and there will always be ups and downs. It is impossible to be excellent at any time. Even though Warren Buffett's long-term performance is excellent, there have been many big retreats. Short-term retracements of more than 20% of star fund products abound. On the contrary, there are some fund managers whose performance in 2020 is not outstanding, who have "resisted falling" in this wave of adjustment and even obtained positive returns. This shows from one side that the temporary investment performance is only an incomplete test of the fund manager's ability, and luck and product positioning just fit the market style, which may lead to high short-term performance of the fund. Investment is not a sprint, but a marathon. Excellent investment performance is often the result of the double care of "God of Luck" and "God of Time". Retreat is not terrible. What matters is whether you can beat the market for a long time and create better returns.

Fear the market, think independently, and be wary of blindly following the trend.

An important reason for the massive withdrawal of many star funds is that the phenomenon of embracing the popular track "core assets" once prevailed in the fund industry is outstanding, and funds operated in this way often perform well in the past two years. Driven by this trend and the relative ranking assessment mechanism, the "core assets" that hold popular tracks in heavy positions often become the preferred choice. It is commendable to insist on independent thinking and not be a vassal of trends. Even the seller's research is just the "core asset" around popular tracks. When the risk comes, it is found that the excessive pursuit of "core assets" on the popular track in the market has crowded the transaction volume and eventually led to a sharp retreat in a short time.

Therefore, excellent fund managers need to respect the market, use mature investment framework and research ability, keep their independent thinking and rational judgment in the complicated market, find opportunities, control risks and seize the "pearl" in the crown of long-term income. Investment funds can't blindly chase hot tracks and star fund managers. They need to think independently about the investment philosophy, investment strength and style of fund managers, find out what funds make money from, control their positions reasonably and wait patiently for the opportunity, otherwise they may choose the wrong person at the wrong time.

In the past two years, the returns of funds purchased by many investors are generally unsatisfactory. What caused the large losses of most funds? Mars, an analyst at Shanghai Securities Fund Evaluation Center, pointed out that, first of all, the essence of fund products is the combination of securities, and the performance of fund income is closely related to the performance of the underlying market. In the continuous decline of the stock market, it is difficult for equity funds and hybrid funds, which mainly invest in stocks, to achieve positive returns. In the case of rising stock market, most partial stock funds can often achieve positive returns. Therefore, it is impossible for funds to create myths and create high positive returns in the continuous decline of the market in recent years.

From the long-term performance, in most cases, the overall performance of funds is better than that of individual investors, especially in bull markets and volatile markets. For example, in 2006 and 2007, more than 80% of equity funds achieved a return of more than 100%, while the proportion of individual investors was less than 20 12 years. Nearly 50% of equity funds have achieved a return of 5% to 30%. According to the survey, more than 50% of individual investors have lost between 5% and 50%. Therefore, the fund is still a good investment tool for individual investors to participate in the capital market.

All kinds of problems, whether China's stock market construction, economic development or asset management industry, can't be eliminated in a short time, and all need the rationality of the market as a whole to promote it. However, as investors themselves, we must measure our risk tolerance clearly and not blindly listen to the propaganda of sales staff. If your risk tolerance is weak, or the funds you want to use in the short term, you can't invest too much in a single stock fund to avoid being greatly affected by the risk of stock market fluctuations. Therefore, for individual investors, it is more meaningful to have a long-term investment mentality, choose appropriate fund products according to their own risk tolerance and renewal, avoid excessive pursuit of popular funds with outstanding short-term returns, pay more attention to funds with relatively stable long-term performance, and spread risks through fixed investment and portfolio allocation to obtain long-term stable returns.

Tip:

First, we should pay attention to arranging the proportion of fund varieties according to our own risk tolerance and investment purpose. Choose the fund that suits you best, and set an investment ceiling when buying partial stock funds.

Second, be careful not to buy the wrong "fund". The popularity of funds has led to some fake and shoddy products "fishing in troubled waters", so we should pay attention to identification.

Third, pay attention to the post-maintenance of your account. Although the fund is worry-free, it should not be left unattended. Always pay attention to the new announcements on the fund website, so as to have a more comprehensive and timely understanding of the funds you hold.

Fourth, pay attention to buying funds, and don't care too much about the net value of funds. In fact, the fund's income is only related to the net growth rate. As long as the fund's net growth rate stays ahead, the income will naturally be high.

Fifth, we should be careful not to "love the new and hate the old" or blindly pursue new funds. Although the new fund has inherent advantages such as preferential prices, the old fund has long-term operating experience and reasonable positions, which is more worthy of attention and investment.

Sixth, we should be careful not to buy dividend funds unilaterally. Fund dividend is the return of investors' previous income, so it is more reasonable to change the dividend method to "dividend reinvestment" as far as possible.

Seventh, we should pay attention not to talk about heroes in the short term. It is obviously unscientific to judge the pros and cons of the fund by short-term ups and downs, and it is necessary to make a comprehensive evaluation of the fund in many aspects and conduct a long-term investigation.

Eighth, we should pay attention to the flexible choice of investment strategies such as steady and worry-free fixed investment and affordable and simple dividend transfer.

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