In the past month, due to the disturbance of various factors, A shares have undergone a lot of adjustment, and the Shanghai Composite Index has also fallen below the important thresholds of 3500 points and 3400 points, and the important broad-based indexes of the two cities have recorded large declines.
(Source: wind, as of January 28, 2022.) ）
Short-term volatility
Or a "shallow ditch" in long-term investment
So, in the face of such a volatile market at the beginning of the year, should investors leave the market or increase their positions?
We all know that for the stock market, due to its long-term higher yield performance and liquidity, volatility is naturally inevitable, and it can be said that it is a norm. However, if we look at it for a long time, what seems to be a lot of volatility in the short term is actually just a shallow ditch under the long-term position, and there is no need to panic and worry too much.
Taking the partial stock hybrid fund index as an example, wind data shows that in the nearly five years since 2012, the index has undergone many adjustments, but if we look back now, the index has rebounded after each correction, and may even continue to hit new highs.
(Source: Wind, statistical interval 2017.1.1 – 2022.1.31)
As Charlie Munger said, think the other way around, always think the other way around. When faced with market volatility, in addition to the need to calm our minds and remain calm, it is more critical to see the investment opportunities that may be contained in them. With the recent market correction, the valuation of the market has dropped significantly, and the investment cost performance is constantly improving.
The pursuit of better cost performance
Strive to create a better experience
Of course, the recent market fluctuations have also given investors a lesson in risk, and many people no longer blindly pursue high returns, and pay more attention to the drawdowns and fluctuations that may be encountered in the investment process. Because the larger the loss margin, the higher the difficulty of returning the capital, and the more difficult it is to achieve positive returns. For example, if the loss is 10%, it needs to rise by 11% to return the capital, but if the loss is 70%, it will rise by 233% to return the capital. In addition, large fluctuations not only increase the difficulty of investment, but also are not conducive to long-term holding.
Therefore, many people hope to achieve a better balance between returns and risks, and fund managers who adopt a diversified and balanced allocation are welcomed by investors because they can better control drawdowns and fluctuations. Steady style and price-performance are the distinctive labels of Morgan Ni Quansheng, who manages funds that not only have less volatility and drawdowns in the past, but also perform very well.
According to the data, as of December 31, 2021, the cumulative return of the Shanghai Investment Morgan Growth Pioneer Hybrid Fund managed by Ni Quansheng has reached 18.17% in the past year, and the benchmark return of the performance in the same period is -3.70%, and the excess return is obvious. In addition, the maximum drawdown of the past year was 15.30%, the average maximum drawdown of Wind in the same period was 20.55%, the annualized volatility of the past year was 19.87%, and the average annualized volatility of Wind in the same period was 23.25%, providing investors with a better holding experience. Due to its outstanding performance in the past, Shanghai Investment Morgan Growth Pioneer Fund was awarded the five-year five-star fund rating of Haitong Securities and Galaxy Securities.
Note: The fund data has been reviewed by the custodian bank, and the performance benchmark data comes from Shanghai Investment Morgan, and the data is as of December 31, 2021. Other data comes from Wind, as of December 31, 2021. Ni Quansheng has been the fund manager of the Shanghai Investment Morgan Growth Pioneer Fund since December 27, 2019. Shanghai Investment Morgan Growth Pioneer Fund is classified as a "partial stock hybrid fund" in Wind, and Wind's similar funds are classified as "fund secondary classification". Haitong Securities rating reflects star ratings as of October 29, 2021, and Galaxy Securities ratings reflect star ratings as of January 7, 2022. The above five-star rating is quoted from the five-year fund evaluation results of the relevant fund evaluation agency, and ni Quansheng's range as the fund manager of the JPMorgan Growth Pioneer Fund does not fully cover the range of the rating of the relevant fund evaluation agency.
Investment, the pursuit is endless. Ni Quansheng hopes to create a good experience for investors, insist on starting from the fundamentals, focus on high-quality growth tracks and high-prosperity industries, select high-quality stocks that match long-term fundamentals and valuations, invest in growth stocks based on a balanced perspective, find the best cost performance for valuation and performance, and adopt a balanced and decentralized strategy to reduce the volatility of the portfolio.
Implemented into specific investment, Ni Quansheng will select more than 1,000 representative enterprises from all A-share listed companies, re-divide the industry, through continuous tracking and research, and use a unified "language" to judge the company's advantages and disadvantages, that is, "expected rate of return", to find the best cost-effective investment opportunities, when the expected rate of return declines, he will usually replace into better varieties to better achieve balanced investment goals.
The One-Year Holding Period Fund (Fund Code: 012904), which is proposed to be managed by Ni Quansheng, is in the process of being issued. Under the premise of strict risk control, the fund will adopt qualitative and quantitative analysis, macro analysis and industry allocation from top to bottom, and select individual stocks from bottom to top, and strive to achieve long-term appreciation of fund assets.
In the investment process, the fund will continue Ni Quansheng's balanced and diversified investment strategy, on the basis of taking into account performance and valuation, focus on good industries and stocks that are rising in the boom or usher in the inflection point, buy when the valuation has a margin of safety, and strive to keep up with the market growth in the bull market and control the drawdown in the bear market. In addition, in order to help investment reduce the number of frequent transactions, the Shanghai Investment Morgan Xinrui Preferred Fund has set a one-year holding period to help investors better achieve long-term investment through mechanisms.
(The market is risky, and you need to be cautious when investing!) This article is not intended as an investment reference guide, readers need to be responsible for their own investment! ）