only choose the right direction and keep an eye on fund companies and managers

If you want to swim fast, it is better to use the power of the tide than to paddle with your hand.

-- Buffett

In the face of dazzling fund products, Xiaobai often tries to sort things out by doing a lot of homework, but he is persuaded to quit by a pile of technical terms and magical operations. In fact, funds are already relatively simple compared to stocks and bonds, and Xiaobai thinks they are unfriendly because they can't extract the most important information from complex product information. Today Niuniu is here to help rookies take the first step in fund management-- choose the right fund companies and fund managers.

Behind each fund, there are fund managers in operation, and behind the fund managers, there is a strong research team in the support of fund companies. Some people have made this analogy: if the fund company is a football team, the fund manager is the striker, the researcher is the midfielder, and the risk control is the defender, and all the parts that make up its overall strength are very important. So, how much reference significance can the strength of fund companies and fund managers have to screen out a "good base"?

01 Identify big brands? How to choose a fund company?

An excellent family, to a certain extent, can create a "starting line advantage" for children. And a professional and powerful fund management company also provides a platform for the birth of high-quality funds. Some people may wonder, every fund company looks more or less the same, how to judge their pros and cons? According to the long-term experience of raising the foundation and the point of view of various gods, Niuniu summed up four factors for consideration.

First, looking at the fundamentals of the company, a stable organizational structure, especially a strong shareholder background, often provides a guarantee for the smooth operation of fund companies.This kind of fund companies usually have a large scale of asset management, sufficient talent reserves, strong strength, and can withstand the storms of the capital market. If nothing else, with the backing of a big financier behind it, it can't come up with the idea of running away at any time.

Second, look at the company management, standardized management and operation, is the basic elements that fund companies must have, but also the basic guarantee of asset security.Even rookies must pay attention to whether the governance structure of fund companies is standardized and reasonable, whether the disclosure of relevant information is comprehensive, accurate and timely, and whether there are records of violations of laws and regulations. Do you still have the illusion of making money in a company that can't even manage money?

Third, look at the research team, the professional level of the research team has a great impact on the rate of return of the company's products.Generally speaking, the return of the fund, especially the active fund, depends on the research ability and capital operation ability of the team. Stable and experienced research teams usually bring good returns. In the final analysis, to invest in a fund is to invest in a money management team.

Fourth, look at the historical performance and pay attention to the persistence of the fund performance.The outstanding performance of individual funds can not reflect the strength of fund managers and research teams, and only the excellent overall performance can prove the operational ability of fund companies. Although companies with excellent past performance may not necessarily produce star products again, fund companies with poor historical performance are very difficult to produce dark horse funds. Perhaps the capital world is so cruel, to invest money or to invest in potential stocks and power groups.

To sum up, a fund company with strong shareholder blessing, large asset scale, standard operation, professional team, strong investment and research ability and excellent overall historical performance is the TOP level in Niuniu's heart.

02 Photo Guide of Star Fund Manager

Although the fund is the common achievement of the whole investment and research team, as the direct manager of the assets, the investment level of the fund manager is very important to the performance of the fund. So what characteristics should a real star fund manager have?

First of all, start with the past management performance of fund managers.When we measure the profitability of fund managers, the comprehensive index that can be selected is the average annualized rate of return, horizontally comparing his position in the industry. However, it is difficult for short-term income data to objectively reflect the true level of managers. After all, it is not a dream to make a big profit for two or three years, and the blessing of good luck for decades in a row reveals the true ability. Therefore, it is also necessary to longitudinally examine the historical performance level of fund managers and whether they outperform the benchmark over a long period of time, which tests their timing ability, asset allocation ability and resilience in the face of market decline.

Second, check the working experience of fund managers.Ginger is still old and hot, not to mention in an investment industry that relies so much on experience. Fund managers who have been in business for longer usually experience multiple economic boom and bust cycles and are more adaptable to different market environments. Of course, the longer you manage the fund, the more stable its style and the more controllable its performance.

Finally, understand the investment concept of the investment manager.In addition to choosing excellent fund managers, it also depends on whether their investment philosophy and investment style are consistent with their own. Otherwise, value investors looking for soundness have picked aggressive growth fund managers and may have to go through a plight every day.

In short, an excellent fund manager should not only have the timing ability to be ready for luck at any time, but also have the resilience under the precipitation of experience. Of course, in addition to excellent quality, we still have to choose the most suitable "helmsman behind the scenes" according to the investment style.

Conclusion

In the fund world with a wide variety and uneven income levels, the first step is to learn to use the power of the strong to choose high-quality fund companies and excellent fund managers, which is also an important guarantee for the protection of assets. Make sure you take the right step, go in the wrong direction, and no matter how hard you try, it will be wrong.