Is it reliable for novices to buy funds with fund company employees?

Is it reliable for novices to buy funds with fund company employees?

Recently, the stock market continues to fluctuate, and many investors find it difficult to find a reliable fund. In fact, "buying a fund is picking people", and a reliable fund manager is indispensable behind a reliable fund. Today, Bian Xiao will share with you whether it is reliable to buy funds with employees of fund companies, for your reference only!

One kind of people, the fund or fund manager they choose, are often referred to by investors in the market, and that is the employees of fund companies. After all, as employees, you can often choose the investment style and management team of fund managers from a relatively professional perspective.

What is the performance of funds held by employees of fund companies?

Recently, the full text of the fund's 2020 annual report was released. By the end of 2020, employees of all-market fund companies held active equity funds 1887, accounting for 2.64 billion shares. The average rate of return of these 1887 funds in 2020 is 54.84%, which is 3.34 percentage points higher than the increase of 5 1.50% of the partial stock fund index in the same period. "Active stock funds" refer to stock funds and partial stock funds under the Galaxy classification.

In the long run, looking back on the earnings performance of active stock funds held by fund company employees in recent 10 years, we can see that the winning rate of active stock funds held by fund employees is higher than the partial stock fund index, and they have successfully outperformed the partial stock fund index in other years except 19 years.

At the same time, the average cumulative income of active stock funds held by fund company employees in the past 10 year outperformed the partial stock fund index in the same period by nearly 63 percentage points. In other words, if you buy a fund with the employees of a fund company, you did get an excess return that was better than the market in the past.

"Active stock funds" refer to stock funds and partial stock funds classified by Galaxy, and the yield refers to the average yield. Cumulative rate of return refers to the average rate of return from 20 1 1 to 2020 multiplied year by year.

If we count the fund holdings of fund company employees in recent 10 years, except for 20 13 years, all fund company employees increased their holdings in other years, with an average increase of nearly 24%, especially in the case that the market kept bottoming out from 20 18 to 20 19 years, the annual increase of fund company employees still exceeded 30%.

It is enough to see that in the face of market fluctuations, employees of fund companies will choose to chase up less and fall less. After all, it is difficult to have a fortune teller in the "stock market", and even professional fund practitioners can hardly make accurate timing judgments. Therefore, for every investor, sticking to long-term investment may be a simpler and more efficient investment method.

"Active stock funds" refer to stock funds and partial stock funds under the Galaxy classification.

How to look at the positions of fund company employees?

Then, the question comes: how to look at the positions of fund company employees?

It's actually quite simple. If we turn to the annual report or interim report of fund products, we can find the situation of employees of fund companies holding this fund in the column of "Employees of fund managers holding this fund at the end of the period". In the "total share range of open-end funds held by employees of fund managers at the end of the period", we can see the share range of fund company executives and fund managers themselves.

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.

The employees of fund companies choose to hold their own funds, which reflects their trust in their fund managers to some extent. Therefore, if investors can't find a suitable fund manager, they may wish to pay attention to the shareholding situation of fund practitioners, and may find investment targets that are really worth holding for a long time.

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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