The three giants of the fund warned the basic people: volatility will amplify the weakness of human nature, and it is enough to see the net value once a month

China Times (www.chinatimes.net.cn) reporter Song Jie chen feng reported in Beijing

With the "out of the circle" of funds, the "top" fund managers once became "idols", and the best era of public funds may be coming.

Invesco Great Wall, Fuguo and BOCOM Schroder combed the 565 million transaction record data of all 46.82 million customers of its 129 active equity funds, and found that as of the end of last year and the end of the first quarter of this year, the annualized returns of active equity funds in the past 15 years were 18.02% and 16.67%, respectively. At the corresponding time node, the average yield of all individual customers in history is only 15.44% and 8.85%, respectively.

The fact that the fund makes money is not much money is still a pain point in the industry. To this end, the general managers of the three fund companies jointly discussed how to solve the pain points of the industry and improve the profitability experience of the basic people's investment.

Strictly control volatility

Xie Wei, general manager of Bocom Schroders, admitted that in the past, whether the people made money or not was the investment behavior of the people themselves or the sales behavior of the channels, and the fund managers rarely paid attention to it. With the great development of the fund industry, the scale has reached 24 trillion yuan, equity assets have increasingly become an important option for household asset allocation, and fund managers need to face up to the problem that the basic people do not make money.

He said that if the volatility of the fund rises from 10%-20% to 20%-30% all of a sudden, when it reaches a critical point, investors cannot control it, they will redeem it, and the profit experience is not good, so it is necessary for fund managers to solve the problem of excessive volatility. In the past two years, fund companies have been trying on the product side, such as the rise of FOF, fixed income +, hoping to give investors some certain returns.

Xie Wei said that BOCOM could not accept fixed income + products with high volatility. If the annualization of fixed income + is close to 20%, it is not fixed income +, or even equity +, but equity ×. The annualized return of general fixed income + is about 8%, the volatility is more than 4%, even if it is high, the basic people go in at a high level, and a 5% volatility basically has no chance to return to the capital.

For active equity fund managers, Xie Wei encouraged them to broaden their circle of capabilities instead of betting on investment. Each fund manager's growth path is dependent, and may be stronger in a certain track, but the volatility of this track is high at a certain stage. "A fund manager from an electronics industry researcher can also learn to consume and manufacture, and after more familiar varieties, there will be various styles in the portfolio, growth, partial valuation, higher prosperity, lower, diversification, and reduce volatility."

FOFs diversify non-systemic risks

Chen Ge, general manager of Wells Fargo Fund, also said that human nature does not like fluctuations, and amplifies the weaknesses of human nature when it fluctuates. The Fund can only diversify non-systemic risk, not systemic risk. Investors in the United States do not chase the rise and kill the fall, is the United States rising for more than ten years has not fallen, has formed a belief? In fact, if the US market is volatile, the investment behavior of the basic people may also be relatively short-term, which is human nature. Just like Chinese investors don't like long-term investment in funds, they don't trade frequently when buying a property.

What are the reasons why the fund makes money and the basic people do not make money? Chen Ge said that every time the number of investment customers increased significantly, it was at the apex of the bull market, and this group of people who chased the rise were often the most injured. The Chinese market is a fast bull and a bear, and investors have reached the peak when they want to buy, so the experience is very poor. I hope that the market can slowly rise, give investors enough time to react, and gradually join, so that every point in time to buy can make money, the mentality of the basic people will be stable, and the weaknesses of human nature will be reduced.

He believes that the solution is FOF, which can diversify the non-systemic risk of fund products. General FOFs can obtain upper-middle returns, which are fine for most of the base population and do not necessarily have to be doubled. At the same time, he mentioned that the mentality of the basic people is very important, buying a fund can not always want to rush to get rich, once a month to see the net worth is enough.

From the perspective of the fund company, Chen Ge said that it is necessary to adhere to a very strict fundamental stock selection, and the bull market is heavy and the bear market is heavy. The volatility of high-quality listed companies is relatively low, and the volatility of cyclical stocks and concept theme stocks is large. Public funds need to adhere to the concept of value investment and not compromise with the short-term trend of the market.

Closed-end products reduce losses

The massive trading data of the three fund companies shows that the income of the basic people investment base = the profit and loss of the fund + the profit and loss of the basic people's behavior. However, in the past 5 years, the vast majority of basic people's operations have not created better returns, but the loss rate to the revenue is close to -60%.

Invesco Great Wall General Manager Kang Le was surprised that the loss in the middle was so high. He said that not only the basic people's own behavior has a loss of income, but also professional people are difficult to avoid. In the development of public funds for more than 20 years, they rarely choose the time, because it is also a negative contribution when stretched, which has been verified in the global market.

Since the good return of the fund ≠ the good income of the basic people, how to reduce the investment loss?

Connaught said that what fund companies have to do in this inequality is to increase the returns of the fund. Public funds hope to reduce volatility in the case of relatively high returns, but in the end, they still pursue relative returns. However, when the people measure whether a fund is a good fund and whether it makes money, it actually sets the goal of absolute return. By investing in FOF, you can increase the probability of absolute returns, and professional things will be handed over to professional people to do, which will definitely have a better effect than the personal allocation of basic people.

At the same time, what the fund company has to do is to help the basic people choose the right products, help the basic people to control their own hands, and the products with a closed period can do this and reduce the losses caused by the operation of the basic people.

"Investor education is a systematic project, and it is difficult for fund companies alone to correct the investment behavior of the basic people, which requires the joint efforts of the entire industry." Kang Le said.