The Spring Festival is coming, will the year-end bonus be far away?
Every year near this time, many friends will get a large amount of cash flow in the year.
So, the lucky ones who got the year-end bonus this year, have you calculated how to spend this money?
In addition to buying gifts for the New Year and honoring the elders' red envelope money, the rest of many people will choose to use for investment and financial management, so that their year-end bonus "money makes money".
But for the vast majority of people, the professional field of investment and financial management is still relatively small, and presumably this year, the financial goals of many small partners have shifted from "earning more" to "stable income". Then the choice of investment type is even more important.
Therefore, how to invest in the year-end bonus to "reduce shocks and stabilize" and "spend more and more"?
#01
Xu Yuan, The Development Institute of Peking University: Funds, the magic and traps of specialization
Teacher Xu Yuan said in the book "Xu Yuan's Investment Lessons and Practical Articles": "We have two ways to invest personally: one is to invest by ourselves, and the other is to entrust others to invest. The essence of the fund is to entrust others to help you invest. In general, I don't recommend retail investors hand-picking stocks, but rather buying funds. ”
Xu Yuan: Professor of Finance, Doctoral Supervisor, National Development Research Institute, Peking University, Senior Researcher of Digital Finance Research Center of Peking University, with systematic research on macroeconomics, real estate market, financial investment, etc.
The fund is a very important personal investment tool, you must have a deep understanding, and strive to master, in order to be successful in financial management.
Teacher Xu Yuan summarized 6 essential points in the book "Xu Yuan's Investment Lesson":
1. The basic principle of the fund is specialization, the use of professional institutions and talents, the management of wealth. Professional management brings five major advantages: information advantage, knowledge advantage, scale advantage, dispersion advantage and channel advantage.
2. There are many funds in the market, good and bad, and it is difficult to pick. The first step in selecting a fund is to classify the fund reasonably, and after classification, many funds are easily excluded and then selected among the remaining funds.
Fund classification has three dimensions, namely investment target, management style, and fundraising method. According to the investment target, the fund can be divided into monetary funds, bond funds, equity funds, hybrid funds, and other funds, including gold funds, commodity funds, and QDII funds that invest in overseas assets. Depending on the management style, funds can be divided into actively managed funds and passive index funds. According to the fundraising method, the fund can be divided into public funds and private funds.
Generally speaking, monetary funds and bond funds are easy to choose from, with larger size, better liquidity, and higher historical returns. Partial stock funds, including equity funds and hybrid funds, are a bit more complicated. The threshold for private equity funds is high, and we will not focus on it.
3. The number of partial stock funds is very large, the difference is very large, the risk is also very large, and it is necessary to carefully select. To select partial stock funds, the following five major factors should be considered, namely fund performance, fund manager, fund company, fund scale, and institutional position.
1
Fund performance is to look at the historical performance of the fund, emphasizing long-term and steady performance.
2
Fund managers are important, and choosing a fund is choosing a fund manager. When choosing a fund manager, it is necessary to look at his historical performance and years of practice. The historical performance is selected for long-term and stable, and the number of years of employment is selected for 6 to 8 years.
3
When choosing a fund company, it is necessary to choose a fund company with large assets and a good reputation.
4
Generally speaking, to choose a larger fund, the same fund company, it is best to choose its flagship fund.
5
The proportion of institutional positions, too low and too high, is not very good, between 20% and 60% is better.
4. There are many fund fees, but it is not so complicated to sort it out. Fund fees are divided into 2 categories, each of which is 3 types and has a total of 6 types. The 2 main categories are operating costs and transaction costs, which include management fees, custody fees, sales and service fees, and transaction fees include subscription fees, subscription fees and redemption fees. The operating fee is levied annually and calculated on a daily basis, and the transaction fee is a one-time fee when buying and selling the fund.
There are also some details that you want to know. First, in recent years, the fund management fee has a tendency to decrease, and when you buy a fund in the future, it is likely to be lower than I said. Second, the sales service fee, subscription fee, and subscription fee are not all to be paid, but choose one of the three. Third, the subscription fee and redemption fee of the fund decrease as the holding period is extended. The longer you hold it, the lower the fee until it drops to zero.
5. Fixed opening funds have been very popular in recent years and are sought after by the market. Fixed-opening funds are open funds with a closed period, during which investors cannot subscribe and redeem, losing liquidity, and can only be subscribed and redeemed during the open period.
6. Many people look for funds on third-party platforms to understand the information, which is no problem, but you need to be cautious when buying. In order to sell performance, third-party platforms will recommend funds that have excellent performance but are not stable enough, and the costs of third-party platforms will be passed on to investors. You can look at third-party platforms, where you get information, sift through funds, and then shop around and buy funds in the channels with the lowest actual rates.
#02
Renowned financial scholar Xiang Shuai: Investment funds, you need to beware of these pits
Xiangshuai: A well-known financial scholar and founder of Xiangshuai Digital Finance Studio. He was an associate professor and doctoral supervisor in the Department of Finance, Guanghua School of Management, Peking University. He was the director of the App "Xiang Shuai's Peking University Finance Course".
The essence of a fund is to entrust the money to a professional to manage. But human nature is selfish, and any professional fund manager has the potential to harm the interests of investors for their own benefit, resulting in a "principal-agent problem". The shady scenes in the fund industry are not uncommon around the world, and this is the reason for this.
The development history of China's fund industry is short, and the well-known financial scholar Xiang Shuai summed up the three pits typical in China's fund industry and the corresponding cracking principles in the "Xiangshuai Finance Lecture Notes" and the new book "Money Never Sleeps II".
1. Lifting the car: the transfer of benefits between funds
First look at lifting the palanquin. Lifting the palanquin is to engage in the transfer of interests between funds, the purpose is to whitewash performance, artificially create star funds.
Why do funds operate this way? Because star funds can bring more benefits.
Suppose a fund company has a star fund and a fund with poor performance, and another fund company has two funds with mediocre performance, which fund company will be more popular with investors?
The answer is the first. Because human beings are born with a tendency to follow the stars.
Star funds are easily sought after by investors, attracting a large inflow of funds and driving sales of other funds.
A good and a bad two funds can bring more money than two funds with mediocre performance. Therefore, fund companies have the motivation to sacrifice the interests of individual funds to create a star fund to drive the income of the entire company.
To avoid being confused by the fake performance of "lifting a palanquin", an important principle is to "check the bottom card".
First, pay attention to the situation of the funds under the fund company. If several funds hold similar stocks, but the performance is far apart, be cautious.
Second, if these funds jointly hold small-cap stocks, the suspicion of "lifting the palanquin" is even greater. Because the large-cap stocks have more circulating chips, they are not easy to be manipulated; while the circulation chips of small-cap stocks are few, and they are up and down as soon as they are pulled, which is easy to control the disk, which is convenient for other funds to relay "lift the car".
2. Rat warehouse: the fund manager's interest transmission to relatives and friends
The "rat barn" is a cancer in the financial markets. Its mode of operation is that the fund manager first uses the funds of individuals or relatives and friends to buy a stock, open a position at a low level, and then use the money of the fund investor to buy the same stock in large quantities, and when the stock price is pulled to a high level, sell the stock on the private account to cash out and make a profit, while the fund investor's funds are trapped.
This behavior is like a rat stealing someone else's grain into its own nest, so it is called a "rat barn".
How to avoid rat barns?
To tell the truth, the rat warehouse is more difficult to find in advance, in reality to avoid falling into the trap of the "rat warehouse", the most important thing is to "recognize the previous crime" and avoid the fund company that has repeatedly exposed the "rat warehouse". If a "rat warehouse" can also be regarded as the personal behavior of the fund manager, similar incidents must occur repeatedly because of defects in the internal management mechanism of the fund company.
In addition, if the fund you buy is exposed to the rumor of "rat warehouse", you must decisively stop the loss and avoid hesitation.
3. Manipulation of stock prices: the transfer of benefits between fund managers and listed companies
Another cancer in the fund industry is the transfer of interests between listed companies and fund companies.
Funds should essentially be independent asset managers that serve investors and help them make money. But in the real world, some fund managers conspire with listed companies to inflate stock prices and create a false prosperity in performance, and personally profit from them.
In the face of this cattiness, the basic principle of identification is to "break superstition". That said, don't be overly superstitious about star fund managers, especially those who have been deified. When analyzing a fund, be sure to pay attention to the fund's holdings, if the fund particularly likes to hold stocks with many topics, active trading, and unsatisfactory actual performance, you should remind yourself of the risks.
Make good use of the methods of "checking the bottom card", "knowing the previous crime" and "breaking superstitions", and always maintain rationality, in order to better avoid the pits in the fund investment.
#03
Chen Zhiwu, a famous economist: How to choose the best fund of funds?
Chen Zhiwu: Renowned Economist, Fung Foundation Chair Professor and Director of the Asia Economics Global Institute at the University of Hong Kong, former tenured professor of finance at Yale University. Winner of the Merton Miller Award.
Is active fund better or passive fund better? Does proactive management really make a difference?
Chen Zhiwu once said in the "Chen Zhiwu Financial Investment Class": For many people, this seems to be a silly question, because at first glance it seems that of course it is better to actively manage funds, and the stock price rises and falls, how can we not control the law and make money by buying and selling?
Although the traditional index fund is an ideal tool for ordinary investors who lack information advantages, it has a key flaw: the more the stock that is hyped up and the more crazy it rises, the higher its weight, and the fund will continue to increase its holdings; and the more irrationally the investor sells the more the stock, the more the stock price falls, it will continue to reduce its holdings. Such index funds promote "blind follow-the-trend" and anti-value investment.
Fundamental index funds completely avoid stock prices, and the fundamentals determine the weight of individual stocks. Stocks whose fundamentals are better relative to other companies have a higher weight in the fundamental index. Such indices bring both low cost and value investment for passive investment.
Fundamental index funds have been used in the United States for more than a decade and also entered China in 2009. The overall actual results are consistent with the simulation results based on historical data, and the performance is higher than that of traditional index funds.
Between different types of financial markets, liquidity varies greatly, and the income is therefore different.
In similar financial markets, the liquidity of different products will also vary greatly. Treasury bonds are the most liquid, but the expected returns are the lowest, such as private equity, land, forest property rights, etc. The liquidity is poor, so the expected returns should be higher.