Beta data: Shock city choose FOF, hold our purse strings!

2022-09-03 0 By

Successful financial management is inseparable from a scientific and rigorous investment system and a persistent investment concept.Today, Beta Research institute planted a tree of knowledge for your fund investment. Please cultivate it with patience and wait for it to blossom.The market rises and falls, the market changes to change, income is also more than volatility, to the base of the mentality caused a great test.For example, the gem has fallen by 17% since 2022, and many of the profits accumulated in the pharmaceutical, new energy and other sectors have been sharply withdrawn.This also led to some investors cut the heart ready to move.Not their own control does not stop, but the market is too shock in “forcing” investors to move.Faced with this situation, Beta Research thinks that perhaps we can turn to FOF funds for peace of mind.FOF Fund: Excellent anti-volatility ability Since 2022, the CSI 300 has fallen by 6% and the China Securities Fund Index has fallen by 4%, while the FOF fund index has fallen by only 2.5%.Compared with the trend of funds and stocks in the same period, the trend of FOF funds is more stable and smaller.(Data source: Wind, statistical interval 2022/1/1-2022/2/10, historical index performance does not predict future performance.FOF fund index 931153.CSI, China Securities Fund index H11020.CSI;In fact, FOF’s excellent retracting control ability is not only reflected in the short term, in the medium and long term, its performance is very commendable.As shown in the figure below, in the declining market of 2018, the decline of FOF fund was less than that of CSI 300 and the Fund index;FOF posted positive returns and significantly outperformed the fund index during the volatile 2019-20 period.(Data source: Wind, statistical interval 2018/2/22-2022/2/10, historical performance of the index does not predict future performance;Overall, since 2018, the maximum retractability of the FOF fund index has been only 6.69%, and the annualized volatility has remained low at 7%.It can be seen that no matter the market is volatile or down, the decline of FOF is much smaller than csi 300 index and fund index in the same period.The results show that FOF has strong quadratic equilibrium fluctuation characteristics.FOF Fund: Professional asset allocation But compared with other products, the core competitiveness of FOF fund is more reflected in the professional allocation of large categories of assets.FOF can spread risk and smooth volatility by virtue of weak correlation between different asset classes through portfolio allocation between broad asset classes.Can avoid investing in a single fund and “tread on the thunder” situation, the risk of secondary diversification, stability than the general fund on a higher level.Facing nearly 10,000 funds and 3,000 fund managers in the whole market, FOF will also select the underlying funds to construct FOF portfolio based on a more perfect fund performance evaluation system.(An FOF fund manager interviewed;Photo source: Hengtai Securities;In addition, professional FOF managers are in the industry, and generally have established a relatively smooth communication mechanism with both public and private offerings, and have more advantages in information access than individual investors.The inclusion of excellent funds into the alternative pool does not mean the end is in sight.FOF will also substitute the industry, style and other factors of the fund it intends to purchase into the model, deduce the expected returns and risks of the overall portfolio, establish the optimal allocation proportion within the framework of the asset allocation plan, track the market situation and policy trends in real time, and optimize the portfolio holding fund dynamically.It can be said that after buying FOF, you can really rest assured to hand everything over to the manager, do not have to worry about redemption, do not have to worry about the market, just need to regularly check their fund returns.For investors, since 2019, the market has become increasingly structured. Many investors, unable to resist the volatility of the market, have changed their funds again and again. As a result, they have not made much money.The mission of an FOF fund is to reduce volatility with the same return, or increase returns with the same return.So investors in FOF funds tend to have a better holding experience.According to Beta Research: If you are an investor looking for long-term steady returns, FOF is likely to achieve your investment goals and take you through ups and downs and market volatility.- End – Disclaimer: The contents of this article are for informational purposes only and do not constitute investment advice, offer or invitation to offer to any person, and investors should not substitute such information for their independent judgment or make decisions based solely on such information.There are risks in the market and investment should be cautious.If you think the content of this article infringes your intellectual property rights, please submit the relevant link to ipr@betawm.com, we will deal with it in time.