Sometimes we see that some funds have the word equilibrium in their names, and some investors may not have figured out what exactly is equilibrium.
It seems okay not to understand before, but this year's market performance, balanced style investment has become a very important thing, so we must understand.
01, three kinds of equilibrium
Some fund managers will be more extremely inclined to a certain aspect, such as Cao Mingchang, Qiu Dongrong is only engaged in value classes, then there are also some fund managers who only engage in growth classes, such as Liu Gesong.
However, most fund managers may have both types of involvement, or even a certain swing, when the market is how, his style will turn to which category. So the so-called equilibrium is first of all the equilibrium on top of this style.
And, of course, there's the equilibrium in the industry. The more thematic fund, the more volatile it is, no matter how good the theme is. In the past few years, we all thought that consumption and medicine were very good, but it was just as volatile. In 2020 and 2021, everyone thinks that new energy is very good, and similarly, there is a lot of volatility in these two years.
In 2021, many new energy funds rose by 80%, and may rise by 100% at the highest time, but the 80% of the increase includes 20% of the middle fall.
Such a fund is of course suitable for the risk-averse type, but for most investment funds, it may feel that the small heart can't stand it. If so, there is a need for a balanced allocation of funds in the industry.
Then there is the equilibrium of large, medium, and small stocks.
In the last year will feel more obvious, the previous large-cap stocks rose better, but in the last year like the CSI 500, CSI 1000 these small and medium-cap stocks rose better, if you are not sure whether the future is the large-cap rise, or the small and medium-sized, then from the perspective of the size of the individual stocks to carry out a balanced allocation.
02, style judgment
How do you get a relative equilibrium when buying funds?
This depends on the valuation of the industry to which it holds its shares, generally speaking, the valuation of that industry is relatively high, which is biased toward growth; if it is a relatively low valuation, it is biased toward value.
Then it depends on which type of stock the stock is a large, medium, and small stock.
On many platforms, there are charts like this, which evaluate the holding style of the fund in two dimensions, one is the large-cap mid-cap and the other is the balanced growth of value.
In this way, we can judge that the fund was mainly invested in large-cap stocks in the fourth quarter of last year, while the horizontal coordinates show that it is biased towards equilibrium and slightly biased towards value.
There are some funds that he may fall into several compartments, that is, it may have a large market, a mid-cap, a small cap, or a large-cap value, a mid-cap equilibrium, a small-cap growth, indicating that his top ten heavy stocks are more scattered.
03, the whole market is still the theme
You also need to look at whether the individual stocks held by the fund come from different industries.
Some funds may not be called new energy funds, but most of its stocks are new energy, so even if it is not called a new energy theme fund, I also define it as a new energy fund.
For another example, there are some fund managers of pharmaceutical funds, his circle of ability is in the pharmaceutical aspect, but he may also manage the whole market stock selection fund, but if you look carefully at the stock holdings, you will find that a large part of the stocks in the whole market stock selection fund are still the pharmaceutical stocks he is familiar with.
Like last year when I was doing the evaluation, E Fangda has a fund, the fund manager's circle of ability is in the chemical industry, I found that most of the stocks he bought are related to this piece, so it is too concentrated in the industry.
However, I also want to tell you that no matter which fund manager, it is difficult for him to involve all industries or most of the industries, he must have those industries he is familiar with, which is called his circle of ability.
We also don't need a fund manager to know a lot of industries, I don't think it's necessary, he can understand 3 or 5 industries in depth is enough.
In his top ten holdings, if it involves 3-5 industries, and even some industries change from time to time, then he already belongs to a relatively balanced industry configuration.
There is also a concentration, that is, the top ten proportions. The higher the proportion of the top ten, the higher the concentration of shareholdings, and the greater the probability of fluctuation.
It would be better for us to find some of the top ten in 2022, accounting for 30 or 40.
04, Why is the loss big? disequilibrium!
A friend said that he has lost a lot since last December, so what is the problem?
We generally want to buy some funds that can have more than market returns, so people often think about what is hot during this time and which theme fund should be bought.
Anyone who has this kind of idea will naturally buy the fund slowly into some more concentrated industries, which is an active behavior.
There is also a passive behavior, some friends may not care much about what industry, buy funds to buy funds that perform well during this time. But funds that perform well for a certain period of time are basically concentrated in one or two industries.
For example, in the first half of 2020, you see that the top funds are basically pharmaceutical funds. In the third quarter of 2021, if you look at the top of the list, the funds are basically new energy funds.
If you like to buy a fund that has risen well over time, it is natural to buy a bunch of funds with different names, but buy a fund with the same theme, in this case it is obvious that it is not called equilibrium.
The word for equilibrium is concentration. Too concentrated in the industry, it is certainly easy to rise up and fall down, so these friends who have fallen more severely in a certain period of time must have risen faster in a certain period of time.