What are the characteristics of high quality?
At present, there are about 15,000 in the market, and how to choose a high-quality one is a problem that plagues every investment
According to my ten years of investment experience, a high-quality product must have the following characteristics:
1. Historical performance:
Historical performance is the income since its establishment, and the higher the historical performance, the better it is.
Of course, historical performance is only representative of the past, not future earnings.
However, historical performance can reflect the overall performance of past investments.
The better the historical performance, the greater the probability of good performance in the future.
2. Maximum drawdown.
The maximum drawdown is the magnitude of its equity from the highest point to the lowest point in a certain period of time.
*The larger the drawdown rate, the greater the volatility of the **;The smaller the drawdown rate, the smaller the volatility.
For example, the maximum drawdown rate of a** in the past year is 20%, which is simply understood to mean that the maximum drawdown of ** in the past year is 20%.
You choose the **, can you accept this maximum drawdown rate, the maximum drawdown.
3. Turnover rate.
*Turnover rate is an indicator that reflects the frequency of *** transactions.
It is used to measure the frequency of portfolio changes and the average length of time a manager holds it.
The higher the turnover rate, the more frequent the trades.
The lower the turnover rate, the more likely the manager is to hold shares and invest in value, hoping to share the benefits of the company's long-term growth.
A high turnover rate does not necessarily mean that it is not good**.
High turnover rate** is more suitable for short-term, volatile investors.
Those with a low turnover rate are more suitable for long-term, value investors.
4. **Manager:
The manager is the manager of the manager, and the higher the level of investment of the manager, the better.
*Manager's historical performance reflects the manager's investment level and investment style to a certain extent.
The active type of manager largely determines the rate of return, and investors try to choose the manager with better historical performance for investment.
One way to look at the manager is to look at the returns he has managed.
A good manager will take every one of his management seriously and try to make each investor earn as much as possible.
Instead of managing more, earning more fees, resulting in uneven and polarized returns to management.
5. Stable investment style.
*Investing consists of nine different styles consisting of large, medium and small caps and six modules such as value, balance and growth.
The investment style that the manager decides must always be executed, and each manager has his own investment style.
If today's investment style is small-cap value and tomorrow it is changed to growth, then this manager must be unqualified.
Switching back and forth between different styles and following the market, investors will definitely lose money.
It means that the purpose of the investment does not change often, but is held for a long time. If you're after short-term market hotspots, the style is unstable.
And in the end, I can't understand it, this kind of ** is difficult to become a good **.
6. **Performance scoring
*The performance evaluation includes five aspects: the ability to select evidence, the ability to choose the time, the stability, the ability to resist risks and the rate of return.
Evidence selection ability: reflects the ability of **selection** to achieve risk-adjusted excess returns.
Yield: Reflects the profitability of ** according to the stage earnings score of **.
Anti-risk: reflects the exposure of ** investment income.
Stability: Reflects the volatility of investment returns.
Timing ability: reflects the ability to run the performance benchmark by adjusting the market trend and allocation.
Summary: Each ** has its own characteristics, in a certain cycle may be substantial**, once the tuyere has passed will fall for a long time, this kind of ** is not a good investment target.
High quality** must be long-term balance, stable parameters, can bring investors long-term stability higher than the market average returns.