What are the investment styles of fund managers?

When designing a fund product, a fund company shall determine the basic product elements such as the investment target, investment scope and investment target of the product. The determination of these elements basically determines the investment style of the fund product foundation. In addition, in the process of product operation, the fund manager makes appropriate adjustments to the products according to the changes in the market, in order to expect to obtain the income of the melancholy benchmark. Therefore, fund products will eventually present a certain investment style. Different types of funds and different fund managers will eventually show different investment styles.

Categories of investment styles

Sharp pointed out in his research that more than 90% of the fund's income is determined by its allocation in large categories of assets. The investment style of funds can be divided into stock type, bond type and currency type according to the characteristics of large types of assets. Later, after further development, it has formed a classic nine-square style chart based on the stock market, which is the most common definition and classification of investment style in the market. In the investment style box, according to the stock market value, it is divided into large, medium and small, and according to the increase, it is divided into value, balance and growth. On this basis, the subdivision dimension of industry, theme and other styles was later added.

The importance of stabilizing investment style

When we choose a fund manager, we will consider the historical performance of the fund manager and whether the operation strategy is in line with ourselves, but pay little attention to the stability of the investment style of the fund manager. In fact, it is very important to maintain a sound investment style.

1, which is conducive to maintaining long-term stability of performance.

The fund manager's guarantee of the stability of fund investment style is conducive to maintaining the long-term stability of fund performance. The fund with stable investment style performs better than the fund with drifting investment style (unstable investment style), and the winning range will be higher with the increase of time. Only when the investment style is stable and the investment of this fund is diversified enough, can the best income be obtained in different market environments.

2. It is beneficial for investors to judge the investment style of the fund.

Steady investment style helps investors to judge the investment style of funds and make investment choices. Investors can understand the investment strategy and style of funds through public information, and choose the matching funds according to their own actual situation. If the investment style of the fund is unstable, the actual performance of the fund will be inconsistent with the risk tolerance of investors, which will lead to investment mistakes.

3. It is conducive to promoting long-term investment.

From the actual situation, most domestic funds either lack a clear style to go with the flow, or deviate from the original style of products to a great extent, which has a great negative impact on the stability of long-term performance of funds and investors' judgment. Therefore, it is very important for fund companies to adhere to the stability of investment style in the process of cooperation with long-term funds.