How to evaluate whether a fund is good or not, investors must first think of it.How much is the return of the fund, and is the maximum pullback big?Because these two indicators are the simplest and most intuitive indicators for investors.

But in fact, these two indicators are far from reflecting the performance of a fund, we should also pay attention to some other indicators to fully understand the fund.

So what method can we use to fully understand the fund? Next, the elephant will introduce to you the method used by the top investors-- the 6p selection rule.

The method used by top investors-- 6p selection rule to select a good fund

The selection rule of Fortune 6p Elephant Fund takes you to conduct a comprehensive quantitative and qualitative analysis of fund products from the following six dimensions to select excellent fund products.

Can be excellent in these six aspects, and in line with their own style of the fund, the great probability is a good fund for you! Next, let's disassemble what stands for behind each "P" with the elephant teacher.

I. performance

First of all, the most important thing is to look at the performance of the fund. I believe that many people have the habit of "looking at the performance and choosing the fund".

Although the historical performance can not represent the future performance, but in terms of probability, the probability of "high achiever being admitted to 985" is greater, and the fund with good historical performance is more worth looking forward to in the future. The top funds always have more "exposure", and many users will keep an eye on the fund's returns for nearly a month or a year.

But for us, the fundNearly three years, five years, ten yearsThe performance is just as important. In the historical performance of the fund,Benchmark relative return, return / risk ratio, upside ability in bull market and pullback in extreme market environmentAnd so on are all important considerations, and also have important reference significance for the future performance of the fund.

For example, we start fromBlackrock World Science and Technology (USD) (LU0056508442.HK) $In terms of fund performance, as of December 31, 2020, the fundThe rate of return in the past six months is 42.62%.The cumulative returns in the past one year, three years and five years are respectively85.50%、165.25%和327.01%They all far exceed the performance of the same type of fund, which can be regarded as the excellent fund in the industry and the "fighter" in Niu Jizhong.

Similarly, we can also see the historical performance of any fund in the Elephant Wealth Fund details page-Historical returns, including each stage, quarterly, and annual income data, according to the followingStrategy for enriching China and Hong Kong (HK $) (HK0000130705.HK) $As an example:

II. Investment portfolio

As the saying goes, "Don't put eggs in the same basket". Investment categories pay more attention to richness and diversity.

When most ordinary investors choose individual stocks, because most of us have our own workplace jobs, we may still be busy during the day, and there is no way to mark the market like professional investors, and there is no lack of stock speculation and buying stocks following the news. it is also rare to review your positions and corresponding positions in a timely manner.

On the other hand, the fund has special fund managers for management and follow-up maintenance, and they are more diversified in the investment portfolio of the fund and more strict in maintenance and management. So, where exactly can we see the investment portfolio of the fund?

Usually, we can understand the top 10 positions of fund managers in this fund through the top 10 positions of the fund. In Futuo Niuniu, enter the details page of the fund, click on the composition, and you can see the top 10 positions and the proportion.

In addition, hybrid funds are a mixture of stocks, bonds and cash, and fund managers can adjust their positions in stocks and bonds according to market conditions.

For example, stock and debt hybrid public offering funds$Dacheng flexible allocation in China (Hong Kong dollars) (HK0000524253.HK) $Balanced style, mainly invested in stocks, bonds and currencies in China. Judging from the latest position data of the fund, the investment style of the fund is mainly value-oriented stock-debt balance, with stocks accounting for 67.43% of the total investment; the industry favors industries such as information technology and finance, and the investment is more scattered. Fund managers can adjust the investment ratio according to market conditions, and the fund allocation is very flexible.

Investors can also see the style of the fund in the fund portfolio, as can be seen in the details page of each fund-analysis.Blackrock Sustainable Energy (USD) (LU0124384867.HK) $The style is market balance, while$Faba Energy Transformation Equity Fund (USD) (LU0823414478.HK) $It is a mid-market growth fund:

III. Management team

Who will manage the fund? This is a question that must be understood before selecting funds.

Fund managers are the "soul". They decide what to buy, how to adjust their positions, how to comply with market trends, and are directly responsible for the performance of the fund.

If the fund manager is the leader of the front, the research team is the rear to provide food and ammunition support. By pooling the research results of researchers and combining their own understanding of the industry, individual stocks and the market, fund managers finally make investment decisions and closely follow the trends of the market.

But in the Niuji world, excellent fund managers can be found everywhere. In order to have an in-depth understanding of the situation of fund managers, we need to make a comprehensive analysis of investment management experience, investment concepts and strategies, and management responsibilities, and choose a manager that is suitable for us.

Generally speaking, fund managers are divided intoGrowth type和Value typeTwo types.

Fund managers with a growing investment style will give priority to stocks.Strong momentum of earnings growthOf the company, andEmerging industries with a trend of sustained growthA company with good prospects for the development of its industry, high growth rate of sales and revenue, reasonable price-to-income ratio, strong management and so on.

For a value fund manager, growth is not crucial, dazzling star stocks are not their goal, the target value of their choice isStability.And the future will be more brilliant than most people thinkPotentiality. In difficult market times, the share price is lower than the sale value of the company, or below the book value. These are exactly what value managers are striving for.

If it is difficult for us ordinary investors to judge the style according to the position of the fund manager, the professional selection team of Fortune Elephant Wealth has already selected it for everyone! Selection team has worked in Goldman Sachs Group, Citigroup, CICC, Societe Generale and other major international banks, with a diversified financial background and rich research experience. When selecting products, we are good at fully examining their performance and investment stability from the past resumes of investment managers and investment teams, so as to help you select a number of excellent fund companies!

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. A good fund manager should have a well-considered and reasonable investment concept that can be implemented in any market environment.

Take Pacific Investment Management (PIMCO), the world's top investment management company, as an example. Their investment philosophy is "Creating Opportunities for Investors in Every Environment (create opportunities for investors at any time)"

The SLOGAN of Yifangda Fund is "We are determined to win in the long-distance race".

When we choose a fund, it also reflects the investment philosophy of this fund company to a certain extent, and it would be great if it is consistent with our own investment style.

V. Investment process

Whether the investment process is scientific and perfect, and whether the investment decision can be accurately communicated and implemented is also one of the contents of the Elephant Wealth selection team.

Fund companies will integrate the scientific methodology of "top-down" and "bottom-up" investment structure to launch fund products. To put it simply, through the top-down framework to select more promising sub-industries or sub-areas, and then through bottom-up stock selection to individual stocks.

The content involved here is more professional, and most of the information needs to go deep into each fund company to check and evaluate. If ordinary investors do not have such time and energy, they can directly check the Futu Elephant Wealth Fund. Each is carefully selected by an experienced fund selection team!

VI. Fund companies

From the fund companyManagement scale, profitability,Time of establishment,Historical management performanceAll 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.

We can log on to the official website of the major fund companies, or learn about each company in the profile of the Fu Tu Fund details page to help us make better decisions.

Take Wells Fargo Fund as an example, we can see all the official information of the company, and you can interact with the official account if necessary.

Up to now, Fortune Elephant Fortune has selected 39 top financial institutions at home and abroad for cooperation, including Blackrock, Morgan Stanley, PIMCO, Franklin, Prudential, Barings, Welli, Yifangda Hong Kong, Castrol International and other world-renowned asset management institutions.

Summary:

After the explanation of 6p analysis, I like to make a small summary for everyone:

Performance (performance)Check the fund sYield of 3 years / 5 years / 10 yearsThe upward attack ability in the bull market and the pullback in the extreme market environment serve as an important reference.

Portfolio (portfolio)Check the fund sTop Ten positionsYou can look at the asset allocation ideas of fund managers as a reference for investment

Management team (People)Are fund managers and research teams your type?Growth type和Value typeWhich do you like better?

Investment philosophy (philosophy)Past performance may not necessarily represent future performance, butInvestment concept and styleIt will run through the whole life cycle of the fund and reflect the choices that fund managers will make in the face of different market environments.

Investment process (process)Whether the process of fund investmentScientific and perfectInvestment decisions can be accurately communicated and implemented

Investment company (pare)Nt)From the fund companyManagement scale, profitability, historical management performanceHow, they are better at it.Stocks or bonds?? Be good atActive management or passive investment？

It is a good fund to pass such a strict test of 6 hurdles.

If ordinary investors do not have enough energy to view and research, they can focus on [performance], [portfolio] and [management team]. The rest will trust the fund companies selected by the Elephant Wealth selection team platform.

Fortune Elephant Wealth will conduct comprehensive due diligence on fund companies, fund managers and fund products. Adhere to long-term value investment, pay attention to comprehensive asset allocation, and be the first gatekeeper of your wealth!

Students can judge what style of investor they are by the content of last class, and then select them by the method of 6p selection rule in this lesson, and they will certainly be able to select a good fund that meets the requirements and suits them.