2. Choosing a fund management company is just like recruiting talents, which requires "having both ability and political integrity".
For fund companies, the so-called "virtue" is the most important thing, which is to be honest and act according to the rules without harming the interests of any investors. All these require a good corporate governance structure, standardized internal operation and a good industry reputation. Because open-end funds are under the supervision of various public opinions, investors can identify fund companies with the help of media reports. On the other hand, because the social security fund has a comprehensive inspection of all aspects of the company when choosing a fund management company, ordinary investors can avoid multiple risks in theory by following the footsteps of the social security fund.
"Talent" of course refers to the investment ability of fund companies. Today, with all kinds of investment theories prevailing, it is powerless to rely solely on media propaganda. Only by making outstanding achievements can a fund prove its ability. A fund management company with excellent overall performance is trustworthy. Now the ranking of fund performance by major research institutions has become more and more professional and detailed. Investors should compare these data published in the media, especially pay attention to the overall income in a long period of time (for example, the income of more than one year). After all, buying funds is a long-term investment, and we need long-distance runners. In addition, we need to choose an excellent fund manager with rich experience and good past performance, so that we can trust him to take care of the money.
When? When we choose investment funds, of course, the securities market is perfect and developing rapidly. Because funds are closely related to the securities market. When the stock market is in a downturn, it is not appropriate to invest in partial stock funds. Similarly, when the securities market is in a bull market, choosing partial stock funds may get more benefits. In other words, the market environment will affect the performance of the fund, and also affect the securities market environment to a certain extent. The perfection of the securities market will not only promote the performance of the fund, but also trigger the investment boom of the fund, which is more conducive to the development of the fund.
When choosing a fund worthy of investment, it is very important to fully understand the fund management company that manages the fund. You should choose a fund management company with excellent integrity, and know something about the reputation, past performance, management mechanism, human resources and scale of the fund management company. The following are some criteria that can be used to judge the quality of fund management companies:
First, standardize management and operation. To judge whether the management operation of fund management companies is standardized, we can refer to the following factors: First, whether the governance structure of fund management companies is standardized and reasonable, including the establishment and mutual relationship of various departments within the company, the supervision and balance relationship of the company and so on. Second, whether the fund management company's management, operation and related information disclosure of its funds are comprehensive, accurate and timely. Third, whether the fund management company has a record of violation of laws and regulations.
2. Operating performance over the years. The internal management of fund management companies, the investment experience, professional quality and management methods of fund managers will all affect the performance of funds. Some fund portfolios are managed by a fund management team including several fund investment managers, while others are managed by one or two fund managers. The latter form of investment management is greatly influenced by personal factors, and if personnel changes occur, it will also have a greater impact on the operation of the fund. For fund management companies that have a sound management system for fund investment and pay attention to teamwork, decision-making procedures are often more standardized and actions are more scientific, which can minimize randomness. In this case, their previous business performance is more reliable and sustainable, which can be used as a reference when choosing funds.
Third, the market image, quality and service level. The market image of fund management companies and the quality and level of services provided to investors are also factors that can be referenced when choosing fund management companies. For closed-end funds, the market image of fund management companies is mainly reflected by the operation and net growth of their funds. For open-end funds, the market image of fund management companies will also be reflected through marketing network distribution, subscription and redemption, and publicity to investors. To invest in open-end funds, we should not only consider the management level of fund management companies, but also consider the convenience of subscription and redemption and the service quality of fund management companies and many other factors.