How to choose the timing of stocks and funds

Stock selection and timing are mainly aimed at active funds. Generally speaking, we can look at the stock selection and timing of funds through these elements:

1. Investment scope and investment strategy of the fund

Investment funds must first define their investment scope. Because only by clarifying the investment scope of the fund will there be no problem of choosing the wrong fund; Through the investment strategy of the fund, we can better understand how this fund is invested. For example, the following fund, its investment strategy is mainly composed of asset allocation and selected stocks. Among them, the selected stocks are companies with unique business model, excellent competition and relatively reasonable valuation in the consumer industry.

2. Working years and historical performance of the fund manager

For active funds, the importance of fund managers cannot be overemphasized. Because fund managers decide core issues such as "when to buy", "what to buy" and "when to sell". Therefore, the research of active funds must be inseparable from the analysis of fund managers.

However, because fund managers with too short working years do not have too long historical performance to prove themselves, the following conclusions exclude these fund managers with too short working years. By the way, it doesn't mean that fund managers with short working years are not excellent.

Working years: it is better to be more than 5 years (because 5 years, fund managers have enough experience to deal with various market environments, whether it is bull market, bear market or volatile market);

Historical Performance (Fund Manager):

If you manage a partial stock fund, its historical performance should be above 8% (annualized);

If the management is a bond fund, the historical performance should be above 4% (annualized).

3. Investment style of fund managers

About the investment style of fund managers, it refers to the investment preferences of fund managers, such as whether they like to invest in blue chips or growth stocks, or whether they like consumer industries, new energy, military industry and so on. Therefore, if you want to find a fund that invests in military themes, you can't choose a fund manager who is good at the consumer industry.

What is the turnover rate of fund managers in the process of managing funds?

The high turnover rate shows that the fund manager is flexible in operation, and mainly creates income for investors through "buying low and selling high" (that is, timing);

The low turnover rate shows that the fund manager's operation is relatively stable, mainly through "buy and hold for a long time" (that is, stock selection) to create income for investors.