Step by step guide to build a fund portfolio
How important is the fund manager?
This course is reproduced from Morningstar and has been partially revised by Futu.
01 who will manage the fund
Who will manage the fund? This is a question that must be understood before buying a fund.
Fund managers hold the investment power of the fund and decide what to buy, what to sell and when to buy and sell, which directly affects the performance of the fund. Therefore, when choosing a fund, a wise investor should know who the fund manager is and how long he has been in office.
There are three ways to manage the fund.
The first isSingle manager typeThat is, the investment decision of the fund is decided by the fund manager alone. Of course, fund managers do not do all the work of research, trading and decision-making. He is surrounded by a group of researchers who provide him with information on various stocks and bonds.
The second kind isManagement group typeThat is, two or more investment managers jointly choose the stocks they invest in. In this way, it is difficult to make a clear division of powers and responsibilities among the members of the group, but sometimes a team leader will make the final decision.
The third kind isMultiple manager typeEach manager is separately responsible for managing a portion of the fund's assets.
At present, most domestic funds implement the fund manager responsibility system under the leadership of the Investment decision Committee, and the investment authority of fund managers is established. For example, fund managers can make their own decisions on investments of less than 20 million yuan, while investments beyond this authority must be submitted to the Investment decision Committee for approval.
In addition to "who is the fund manager", it is also important to understand how long the fund manager has managed the fund.
Before you buy a fund, you need to make sure that the fund manager who created the fund's past performance is still in its position. Because if the fund manager has left, the future performance of the fund may be a big surprise, for example, the performance of some funds has declined significantly after the change of managers.
Therefore, if you are indecisive between two equally good funds, you might as well choose the one whose fund manager has been in office for a long time.
02 does the change of fund managers have a big impact?
If the fund manager leaves after buying the fund, should we sell the fund we hold immediately? This is not necessarily a wise move, because different types of funds are affected by changes in fund managers to different degrees.
Some of the following funds are less affected by changes in fund managers.
Index fund. Instead of actively choosing the stocks to invest, the fund managers only need to passively imitate the index and invest in the securities that make up the index according to the proportion of the index. Therefore, the impact of the change of fund managers of index funds on the fund is not as large as that of actively managed funds.
The fund of a first-class fund company. First-class fund companies are full of talents, with many talented fund managers and analysts. Even if one fund manager leaves, another manager immediately fills the vacancy. Therefore, for these fund companies with excellent funds and excellent research teams, the change of fund managers will not cause much trouble.
Manage small group funds. Generally speaking, the impact of changes in fund managers on the management of group funds is usually smaller than that of individual funds. Of course, the premise is that the management group fund does adopt a democratic approach to investment decision management.
On the contraryThe changes of the following types of fund managers should arouse our vigilance.A fund of a single manager; a fund that adopts an active investment strategy; the performance of the fund is good, but the overall strength of the fund company is not strong, or there are no other funds with similar investment styles.