Every Wall Street person has seen or pretended to have seen the margin call movie (translated as "Business Sea Ultimatum", a certain petal score of 7.9). Set against the backdrop of the 2008 financial crisis, the film tells the unpredictable, ever-changing 24-hour story of an established Investment Bank on Wall Street before the subprime mortgage crisis erupted.
At the end of the film, the big boss John tries to persuade the general manager Sam to stay and serve the company, he has a calm face, a gentle tone, and an understatement of a bunch of years: 1637, 1797, 1819, 1837, 1857... 1929, 1937... 1984...
After listening to John's sermon, Sam stood up and said in a slightly regretful and sarcastic tone that he would stay, but not because of John's little speech, but because he was need money.
Each of the years involved in this dialogue represents a major crisis moment in financial history, such as the familiar Dutch tulip mania of 1637; the Great Recession of the Anglo-American credit market caused by land speculation in 1797; the collapse of American banks in 1837; the Great Depression caused by the collapse of Wall Street in 1929; the famous "Black Monday" of 1987, the Dow Jones fell by 22.6% that day; the Asian financial crisis in 1997... Wait, behind every crisis is the evaporation of billions, if not tens or hundreds of billions, of capital, and the economic depression that follows.
The first recorded financial crisis dates back to the 4th century BC, when inflation occurred in Sicily and southern Italy with the aim of reducing debt. Of course, the earliest feature of the modern financial crisis was the South China Sea stock bubble crisis in 1720, in which the great Mr. Newton was also deeply entrenched, losing 20,000 pounds and then leaving the market, which was equivalent to his salary for 10 years as a mint director.
Before the 19th century, financial crises were few and far between. At the beginning of the 19th century, humanity began to enter a new normal. But no matter what kind of crisis, it can not stop the pursuit of wealth by mankind, and the history of human financial development is a history of continuous promotion of financial investment tools and confrontation with risks. Common domestic investment instruments, such as common stocks, preferred stocks, corporate bonds, local bonds, treasury bonds, funds, etc., and others such as options, warrants, trusts, ETFs, REITs, CMOs, etc. are more recognized in the international financial market. Each tool has its own pros and cons, with both benefits and risks flying together. All investors, whether institutional or retail, share a common goal: to minimize risk and maximize returns. Early U.S. stocks were also the domain of retail investors, and before the Great Depression of 1929 mentioned above, the market value of the outstanding shares held by retail investors was as high as 90%. According to data, institutional investors accounted for 8% of equity investment in 1950, and by 2010, institutional funds in the market had increased to 67%.
By 2020, this number has increased to more than 80%. Compared with institutions, retail investors have obvious disadvantages: incomplete research on products and industries, lack of financial knowledge and experience, etc., make retail investors unable to compare with experienced and well-funded fund managers. According to the statistics of the A-share market, in terms of the number of shares held, retail investors reached 58.84% at the peak of 2007, and then gradually declined, and are currently stable at more than 30%.
"Poor dads" try to save money, and "rich dads" keep investing. Investment risk is always everywhere, learn to control risk rather than blindly avoid risk, investment diversification has become a standard weapon to reduce risk. From this perspective, funds within funds (FOFs) open another window for ordinary investors. By purchasing funds that invest in other funds, "little white" investors can get additional protection from multiple fund managers, which provides far more diversity than a single fund.
What is a Fund within a Fund (FOF)? A collective investment fund that invests in other types of funds. In other words, its portfolio contains different underlying portfolios of other funds. These holdings replace any direct investment in bonds, stocks and other types of securities.
FoF strategies are designed to achieve broad diversification and appropriate asset allocation, including investments in a portfolio of investments across a variety of fund classes.
For "dry rice people" and workers with smaller risk exposures, savings are handed over to more professional FOF fund managers, which is obviously one of the good ways to reduce risks and increase returns. China Merchants Bank's newly upgraded "Capricorn Smart Investment" is such an investment weapon similar to FOF.
Capricorn Wisdom Investment - "fund portfolio manager", which can be commonly understood as "fund account". That is to say, a fund account is opened in the bank, investors put money into it, and the professional team of Capricorn Intelligent Investment starts from the perspective of asset allocation, selects the fund products for the account, and dynamically adjusts it in a timely manner with market changes, so as to achieve the overall return. Behind Capricorn Investment is not a certain fund, but a "package" fund portfolio. In order to better match the different risk preferences of investors, CMB Capricorn Intelligent Investment has customized 3 kinds of portfolio strategies.
"Steady return portfolio", based on debt, enhanced through equity products, to harvest stable returns;
"Flexible allocation combination", 30% of the equity center, steady progress, can rise and fall.
"Through the bull-bear combination", the stock and debt are moderately balanced, and high-quality funds are selected and strategically allocated and long-term investment is adhered to in order to pursue higher returns, which is suitable for investors with strong risk tolerance and higher pursuit of target returns.
Behind all the combinations, based on Capricorn's unique platform and professional advantages. CMB has a platform to select high-quality funds in the whole market, relying on the experience of five-star fund selection, combining quantitative and qualitative, and selecting the best among 8,000+ funds to help investors solve the difficulty of selecting "base".
At the same time, we will build a large-scale asset allocation portfolio, adjust in a timely manner in the face of changes in the market environment, accompany investors throughout the process for 365 days, alleviate investment anxiety and pressure, and develop long-term investment habits while making friends for time. The data shows that since its inception, the three combinations of "steady return", "flexible allocation" and "crossing bull and bear" have achieved gains of 23.42%, 43.36% and 70.36% respectively, significantly outperforming the Shanghai Composite Index with a return of 7.73% in the same period.
As the saying goes, investment and financial management is not achieved overnight, but also requires time and experience. CMB Capricorn Intelligent Investment not only helps investors solve the confusion of market judgment and the behavioral deviation of "funds make money, basic people do not make money", but also provides professional advice for investors, from portfolio construction, position adjustment management to position care, the whole process of accompaniment, so that financial investment becomes simple and calm.