How to understand a fund in a comprehensive way?

Earlier, we introduced how to select the base through Morningstar rating and some common indicators, but the fund selection should not only consider historical performance, but also a comprehensive analysis.

As Buffett said: you have to know what you're buying. So before we buy a fund, how to understand a fund comprehensively and deeply?

Generally speaking, there are six areas of information we need to know: performance (performance), portfolio (portfolio), team management (people), investment philosophy (philosophy), investment process (process) and asset management company (parent).

This can also be referred to as the 6p selection method, which is the selection method of the Fortune Elephant Fortune team. For us individual investors, we can also use this method to understand funds and obtain fund-related information. Next, let's analyze them one by one.

I. performance

Although historical performance does not represent future performance, just as people think that "high achiever is more likely to do well in the exam", many investors have the habit of "looking at performance and choosing funds." In addition to the short-term performance of the fund, the returns and the performance-to-price ratio of investment in the past three and five years are all important considerations.

We can be in the elephant wealthFund details page > performance trends and historical returnsTo see the historical performance of any fund, including income data for each stage, quarter, and year At the same time, we should also pay attention to theMorningstar rating and fund indicators.

Some investors may ask, do these gains include management fees? Don't worry. At present, all the income-related data of the Fortune Elephant Fund have been deducted from all fees, and there is no need for investors to pay extra.

InClick performance > transaction rules > transaction process and operating expenses on the fund details page.You can view all processes and expenses

II. Investment portfolio

The investment portfolio mainly refers to the asset types and key positions of the fund.

Generally speaking, the stock base is mainly invested in stocks, and we need to pay attention to what stocks this fund holds, especially heavy stocks, whether we are optimistic about it ourselves; the position of the debt base also depends on whether it is a national debt or a high-yield investment bond. On a mixed basis, what is the share of equity and debt, and what other assets are there?

Among the rich Niu NiuGo to the fund details page > Click performance > to view the top ten positions of the fund.; and on the fund details pageClick Analysis > portfolio > to view the asset type, regional distribution and so on.

III. Team management

Who will manage the fund? This is a question that needs to be understood before choosing a fund.

Generally speaking, active funds pay more attention to the ability of management team than passive funds. Investors tend to prefer long-time and experienced fund managers and research teams. Besides, how is the stability of the whole team? Generally speaking, teams with few change records and high stability are better.

In the details page of a fundSummary > Fund ManagerYou can view it.

IV. Investment concept

The investment philosophy and style of each company will be different, and the concept will run through the whole life cycle of the fund, reflecting the choices that investment managers will make in the face of different market environments, which will be better if they can match our own investment preferences.

We can understand that the fund management team pays more attention to "top-down" or "bottom-up" investment research method, the former pays more attention to macro and industry changes, and the latter pays more attention to individual stock mining. Do fund managers prefer growth style or value style? Fund managers with growing investment style will give priority to emerging industries with a sustained growth trend, while for value fund managers, dazzling star stocks may not be the best choice, and low valuations and stability are more important.

V. Investment process

We should pay attention to whether the investment process is scientific and perfect, and whether the investment decision can be accurately communicated and implemented. In addition, we also need to look at the type of investment assets and proportion constraints. Funds that are restricted to large-cap stocks, for example, are required to perform less prominently when the style of small and medium-sized stocks is strong.

Whether it is the investment concept, or the investment process, usually need to go deep into each fund company to review and evaluate, fund files and periodic reports is one of the channels of understanding.

Click on the details page of a single fundOverview > Fund Overview > View detailsOr click on a fund document in a brief situation to learn about it.

VI. Fund companies

Fund companies' management scale, profitability, establishment time, historical management performance and other aspects need to be listed in the scope of the study; for example, whether fund companies are good at doing stocks or bonds, active management or passive investment, will affect our choice of funds.

For example, Blackrock, who has firmly occupied the leading position of asset management for many years, Morgan Stanley and Franklin with strong strength, and Baring and PIMCO, who are particularly professional in bond trading.

We can log on to the official website of the major fund companies, or learn about each company in the profile of Fortune Elephant Wealth to help us make better decisions. The corresponding information can also be found inA brief introduction to the details page of the fundFound it in.

All in all, in order to have a comprehensive understanding of a fund, we need to make full use of the fund details page and related documents to obtain the above six major information. Through such a variety of investigations, it is like giving a full-body physical examination to a fund to better understand it, and it can also help us to choose a fund that is more suitable for us.