Secondly, in the active partial equity funds, the latest quarterly report data shows that Penghua Industrial Selection (72% food and beverage, 28% pharmaceutical and biological), Penghua strategic return (80% food and beverage, 10% non-bank financial, 10% Pharmaceutical and Biology), Penghua Selected Return Three-year regular open (85% food and beverage, 8% non-bank financial, 7% bank), Bank of Communications trend priority (72% food and beverage, real estate 12%, household appliances 11% ), Huitianfu cultural, sports and entertainment theme (48% food and beverage, 29% medical biology, 23% leisure service).
Obviously, in the process of the market's rise from 2,600 to 2,900, the net value of the funds rebounded sharply and reached a record high. There is a commonality, that is, the latest report shows that the main investment is in the food and beverage sector.
2. Can I make a fixed investment?
So, can these funds with record net worth hit a record high? We know that the target of fixed investment needs to meet two conditions: sufficient volatility and good mid- to long-term performance.
First, look at volatility. Since the stock type and hybrid type are discussed here, the rebound exceeds 20% from less than 2 months, which also shows that the volatility is large, so from the perspective of volatility, they are all suitable for fixed investment.
Secondly, look at the performance level. There is no doubt that whether it is from the recent rebound or the net worth has hit a new high since its establishment, it can be seen that the performance is still good. However, it should be noted that the target of the fixed investment is not only good short-term performance, but more importantly, good mid- and long-term performance. This also depends on the fund’s establishment date and historical performance. Not only that, but also on this basis. Do further screening.
1. Look at the date of establishment
There are only 2 funds whose establishment dates are more than 3 years, namely Bank of Communications Trend Priority (2010.12) and Penghua Zhongzheng Wine (2015.04). As we said in the previous fixed investment course, we should try our best to choose a fund with an establishment date of more than 3 years, because the longer the establishment time, the longer the cycle of checking the fund's performance, so as to see the medium and long-term operation of the fund. Conversely, if the establishment time is too short, only the short-term performance of the fund can be seen, and it cannot be seen for longer.
For example, among the 7 funds that rebounded sharply and their net worth reached a record high, 5 funds were established less than 3 years ago, and some were less than 1 year old. For this kind of slightly "new" funds , It is recommended to be cautious.
2. Investigate fund performance at different stages
The net value of the fund has hit a record high, which can only show that it has performed well recently, but it does not represent the outstanding performance of the fund since its establishment, and the stability of the fund’s performance.
For example, Bank of Communications has a trend priority. Since its establishment, the annualized rate of return is 11.02%. Compared with other funds of the same type, this rate of return is actually average. Take E Fund's small and medium-sized caps (established in 2008.6), which we are more familiar with, the annualized income has reached 17.12% since its establishment.
In addition, it also depends on the stability of fund performance, that is, examining fund performance at different stages. For example, the trend of Bank of Communications takes priority. Looking at the annual growth rate since 2012, the quartile ranking in 2012 is “poor”, and the years when the quartile ranking is “average” are 2013, 2014, and 2018. Most of the quartile rankings in other years are As "excellent", the overall performance stability is fair.
Source: Haomai Fund Net
3. See if the term of the fund manager's tenure is greater than 2 years
For active funds, fund managers are critical. Although the fund's performance in the previous period was very good, if the fund manager suddenly changed temporarily, wouldn't it be useless? Therefore, it also depends on whether the tenure of the fund manager is greater than 2 years. If a new fund manager takes over,It is necessary to pay attention to the fact that there may be situations in which fund managers are replaced.
For example: Bank of Communications has a trend priority. On May 6th, a new fund manager (Yang Jinjin) was added, and this fund manager is managing a fund for the first time. The management level needs to be observed again.
4. Look at the scale
The scale also depends. For active funds, too large a scale may affect the performance of the fund. For passive index funds, the larger the scale, the better, and the larger the scale, the smaller the impact of large-amount redemption on the tracking error of the fund.
Due to the sharp rebound this time and the number of funds that have reached a record high (as of May 14), there are no funds that meet the conditions after the above screening. Therefore, don’t see a fund that has rebounded sharply in the short term and its net worth has reached a record high, just buy it all at once. Whether this fund is worth investing in, we need to further screen.
So, can't you buy funds that have rebounded sharply and hit new highs? In fact, this has a lot to do with the interception point of time. When selecting funds, try to ensure that the base of funds that can be screened is large, so that we can filter out some of the funds we want through the above methods we just mentioned. Not only will the funds be flexible when the market rebounds, but also Long-term performance is good and stable.
Faced with the market rebound, the fund's net value has also rebounded sharply, and the fund has reached a record high. You cannot think of it as a good fund, let alone invest in it without investigating it. Whether the fund is worth buying or not, we need to consider several other factors, such as the date of establishment, the performance of funds at different stages, and the length and scale of the fund manager’s tenure. Of course, there is a very important reference for index funds. The indicator, that is valuation. It should be reminded that the fund base that can be screened is as large as possible, so that it is more likely to screen the funds we want.
Finally, I want to leave a question for everyone. Some users asked that many funds that have risen very well are already very large, even reaching 20 billion. The plate is so big, can you still buy it? What do you think? Welcome to write your answer below, let's interact together.
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Disclaimer: The content of this article is based on public data research and does not constitute investment advice. Investors should make prudent decisions and bear risks independently.
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