Category: Money tips Release date: 2006-08-17
Look at the whole, look at long-term, look at the risk of the Fund's performance rating should be Dialectical
At present, the Fund has become an important financial tool for a variety of fund performance rankings are endless. "For beautiful eyes gradually squandering" the face of Morningstar, Lipper, Galaxy, value funds established by various organizations list, the face of each half-yearly, quarterly, monthly or even weekly rankings of the fund, Investors can not help but fall into the quagmire of the data. Vice President and Chief Investment Officer of Cathay Pacific Fund Chen Su, therefore proposed to use three principles to look at fund performance rankings, may be able to arrive at a more reliable conclusion.
A first principle is: look at overall performance. Change the performance of individual funds, many causal factors, as long as significant changes in one of the factors inevitably lead to performance ups and downs. However, a fund management company all of the funds if the performance of a strong synergy and consistency, it shows the company as a whole higher level of investment research, management mechanism and decision-making process is relatively more perfect, its performance would have reproducibility, causal factors will not result in performance fluctuations.
The second principle is: look at the long-term performance. Cathay Pacific's funds have a feature that is, the longer the ranking, the better front. Fund Jinding for three consecutive years to maintain the five-star rating, Guotaijinying is maintained at the top three rankings for three consecutive years. Chen Su believes that a fund in three years or five-year period has remained at high yield, low risk, can claim to be a really good fund. The first domestic fund performance rating is only a one-year level, which currently is gradually improving, an increase of two-year, three-year period, and so the level of fund performance can sustain a long time, has become an important reference for evaluation of the Fund.
The third principle is: look at risk-adjusted level of income of the Fund. Country there are some top-ranking fund, its risk indicators is also very high, if the risk-adjusted returns for comparison after the ranking will drop. Cathay Pacific Fund, on the contrary, almost all of its CPA funds, risk-adjusted ranking improved to varying degrees. Chen Su says that for investors, high-yield, low risk is the best choice. Sometimes, the importance of risk control may be more important than access to high-yield. Therefore, the risk-adjusted returns that investors should pay more attention to indicators.
Chen Su concluded by saying that only because of the ratio of securities investment funds, performance is not the same base of comparison, the current fund performance evaluation system, although a classification, but still fail to reflect the nuances of all funds products. Thus, for ordinary investors, fund performance ranking is only a reference, the Fund's more good or bad depends on their needs. (Send
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