Category: Money tips Release Date: 2007-02-28
In last year's cattle Quotes, many individual investors found that, although kept constantly busy for a long time, it may still not keep up with broad market gains last. Moreover, compared to those who have already earned, "pours" of institutional investors, individual investors are increasingly found that frequent changing hands only to securities companies actually "working."
According to the Shenzhen Stock Exchange has published statistical reports in January, from the turnover situation, individual investors, institutions and the general breakdown of turnover of the top three brokerages to insurance companies and other institutions and QFII trading exchange hand the rate of at least. Insurance institutions and QFII trading turnover is only about one third of the fund, broker's one-sixth of one-twelfth of individual investors. Fund turnover is a quarter of individual investors.
In fact, individual investors and institutional investors a huge difference in the level change hands, it is reflected both for investment to different interpretations. Institutional investors in the value of investment has gradually become the mainstream of the market environment, and more from the industry, company development, the fundamentals point to choose the direction of investment, while individual investors by the lack of a relatively stable investment methods, analytical methods, etc. conditions, limitations, often more inclined from the daily fluctuations in the price received from the market "profits" or, worse, often according to the market every minute, second fluctuations, to be traded.
Obviously, this makes the turnover is much higher than individual investors to institutional investors, and that the cost paid by Gao Xia Li sentence. Suppose a round-trip transaction costs of 1.5%, then the individual investor only needs to do 65 times such transactions, we can put the same on the principal amount of the funds "consumed" out. If you can not re-stock selection method, then the profit of individual investors can imagine.
In fact, many experts believe that reducing turnover is to improve the equity investment income an important way. It is noteworthy that, in the case of high turnover, individual investors trade frequently, often have no confidence in the big city, or is the natural expression of no confidence in the stock picking. For diversification, the famous economist John Maynard Keynes believed that he would rather be a judge they have sufficient confidence in the investment, rather than investment or even ignorant of how little they know of 10 securities. Moreover, the invention of the investment market "theory of beauty" concept economists also believe that their own eggs in different baskets in many years, but no time or opportunity to see how many there are no holes at the bottom of the basket, to do so will certainly increase the risk and losses.
The most famous value investor Warren Buffett in the inherited his teacher Graham emphasis on investment "safety margin" basis, but also to lower investment turnover into a very high position. From his portfolio to see some of his key investors such as Coca-Cola and so on, to hold a long time. It should be noted that the high and low turnover reflects the understanding of different investors in different markets. Graham believes that the short term, the market like a "voting machine", investors decided according to changes in price volatility trading; but long term, the market is more like a "weighing device", you can measure the value of the company.
Contrast the difference between the various institutional investors change hands, but also can be a lot of useful information. For example, as an open-end fund groups, due to the redemption of fund investors or purchase factors, the size of their investments may not always be in a stable condition. For those who have the scale of investment is fixed, the investment philosophy based on the long-term QFII, insurance institutions, its turnover may be more than open-end fund groups, is much lower.
At the same time, a lot of funds from the public information can be found that those who invest in extraordinary performance of a fund manager of its investment portfolio change hands may not be high. Some star fund managers are also some public occasions, said he was usually the operation of the Fund is not very frequent. Can be seen, appropriate reduction changing hands, is to improve investment performance of individual investors as an important starting point.
