The list of high-quality authors in a bear market is easy to trigger all kinds of thinking. After experiencing the trouble of not having bullets after increasing the position, I found that the initiative ** not only did not make good returns, but also had high management costs. After full consideration, it was decided to switch the previous initiative to an index.
First, the management fee is high.
As shown in the chart above, the average active management fee is 1. per year5% or more.
Second, the turnover rate is high.
Looking at the above chart of the semi-annual changes of the active and passive positions, it can be clearly seen that the changes in the proportion of industries in the passive index** are relatively flat, mainly because of the changes in the tracking index. The fluctuation of the initiative is very violent, and it depends more on the active choice of the manager, who chooses the right battle to become a god, and the wrong choice can also blame the bad market. It may not be suitable for investors like the author who prefer asset allocation, because it is impossible to determine the specific industry to which the ** belongs for allocation.
Third, the certainty is not high.
The following is an annualized return of up to 1512% of celebrities** manager Zhu Shaoxing's Wells Fargo Tianhui Growth Mix A B (LOF) (*161005) is an example.
The correlation between the ** and the CSI 300 is very high, and the accumulated excess returns since its inception are mainly due to the ** of a certain few months, such as during the period from 2019 2 6 to 2020 7 15, due to the ** manager holding a small number of ** shares, many active ** excess returns are obvious.
However, whether the manager will still hold a group in the future, and whether the group is successful depends on many factors. If there is no huddle, what else does the manager have to take the initiative to choose the base? The index is also inevitably cyclical and mean reversion, not to mention that the manager is also a mortal in the flesh. In the past 3 years, because ** is in the ** situation, there is no obvious excess return, fluctuating up and down around the index, and even sometimes short-term over-falling, see the figure below.
Starting from the bottom of the market, there is no way to know whether the active can outperform the passive, and the future will not be.
To sum up, the advantages and disadvantages of the initiative lie in the word "active", if the ordinary people in order to save trouble, directly believe in the manager, as long as the market is in a downturn, the rest will be handed over to the manager. This method does not evaluate whether it is right or wrong, and it is also a choice.
As a citizen with some experience, I have experienced the rise and fall of the index, and it is not a more cost-effective choice to directly buy a passive index that tracks the index. To paraphrase the Internet buzzword, "It's not that you can't afford it."
It is a passive index** that is more cost-effective. ”
How to switch, anyway, when the market is falling, according to your own asset allocation, use the original "conversion" function to switch. If you don't have a specific idea, you can ** broad-based index, such as comparing your own position initiative ** and the net value chart of the broad base, starting from ** time, if a broad base falls more, you can switch, because the mean reversion, you may get a part of the excess return.
Fourth, practical operation.
Conversion object: At the low point of the market, most of the ** are **, so there will be no rebalancing. The author adjusts positions according to the difference between the theory and the actual index of his own index, such as consumption, medicine, and **These indices are not enough, so give priority to switching positions for these indices. The following figure shows the specific object of switching.
Specific operation: Every day**, Alipay and other platforms have conversion functions, in fact, the platform provides funds to investors for transit. Normal rebalancing requires selling first, and then using the funds sold**, or preparing another amount of funds to ensure that ** and selling are on the same equity date. Using the conversion function saves time and money more than selling**, and is more worry-free, which can be regarded as a financial innovation. For platform companies, it can better meet the needs of customers in this way, increase customer stickiness, and also benefit their own development.
The above is all the content of this rebalancing, after half a year or a year later, see whether today's rebalancing is reasonable and whether there is excess returns. You can also share your **purchase experience with me, welcome to leave me a message, and we will ** together**.