There is only one standard for a good fund, that is, a good fund can help you make money! It is a difficult thing to choose a good fund. After all, the fund market has developed to now, and there are more than 10,000 different types of funds, and the number is still increasing. Needless to say, we invest in funds in order to get returns. The essence of funds can be expressed in one sentence, that is, we hired a fund manager to help us manage a basket of stocks or bonds and use their professional investment ability by paying them (fees and management fees) to realize the appreciation of investment. Then, what kind of fund is a good fund actually depends on whether the profit it can bring us in unit time is enough. For a simple example, if you invested in China Merchants CSI Liquor five years ago, the investment has increased by more than five times after five years. This fund is obviously a good fund. On the contrary, there are some funds like the ICBC CSI Media Index. After more than five years, the income of this fund is still negative, which is obviously not a good fund. Then the question is, what kind of fund is a good fund? I want to change this question to another way, that is, what kind of fund should not be chosen, and it may be easier to answer some. Please keep in mind the following criteria. 1. If the fund company is too small, try not to choose more than 100 fund management companies in the current market. Excellent fund companies will obviously have stronger operational capabilities, such as better management methods, better assessment system, better logistics support and stricter risk control system. Some time ago, it was revealed in Ye Fei that some fund companies would cooperate with listed companies in market value management. I believe that in some large fund companies, with complete and strict risk control systems and management systems, these things are not easy to happen. Success can be replicated. If a fund company continues to operate on a small scale, it is obviously unable to attract great gods and its market appeal will be poor, which will lead to a smaller fund, and if it is less than a certain scale, it will face the risk of liquidation. So choose a fund, under the same conditions, try to choose the fund of a well-known fund company. The following table shows the top ten fund companies at present: 2. If the fund scale is too large or too small, try not to choose a fund with too large a scale, which will make the management of fund managers inconvenient. For example, the exchange of positions is not as flexible as that of small funds. A typical example is Zhang Kun&;s E Fund Blue Chip. According to a quarterly report, the scale of E Fund Blue Chip has exceeded 88 billion, which was obtained under the condition of daily subscription limit of 2000. According to the recent subscription of E Fund Blue Chip, it may be infinitely close to 100 billion or more. After the Spring Festival, the performance of E Fund&;s blue chip is very unsatisfactory. Some time ago, I cleared all the blue chips of E Fund that I held for more than half a year. Of course, the scale of the fund should not be too small. For fund companies and fund managers, management fees are the main source of income. If the scale is too small, the management fees will be less, and it will be difficult to maintain normal operations, let alone attract excellent fund managers to operate. In addition, the small scale of the fund is probably due to the past.The unsatisfactory performance of. Personally, I understand that the size of the fund should be above 100 million as far as possible, and if it is less than 50 million, there may be the risk of liquidation, so try not to choose it. If it is the upper limit, I choose not to exceed 20 billion as far as possible. Of course, if it is an industry fund, the upper limit can be relaxed appropriately. 3. The working years of fund managers should not be too short. Generally speaking, it is widely recognized that fund managers who have not experienced the conversion of bulls and bears are prone to being too radical or too conservative. A-shares experienced a sharp drop in 2015, fused in 2016, traded in 2018, a big bull market in 2019-2020, and a partial bear market in the bull market in 2021. If you haven&;t experienced a fuse, it&;s hard to imagine what a stock market crash is, and you can&;t have enough awareness of the risks. However, I personally think that this issue can be divided into two sides: First, five years&; experience is of course very important, but due to the large number of funds at present, many fund managers are new to the industry and they need to undergo market tests. But we can&;t exclude all these young fund managers with ideas and momentum because of this hard indicator. Second, the market is changing faster and faster, some sub-sectors are becoming more and more professional, and the investment auxiliary analysis or operation means are becoming more and more advanced, and the investment concept also needs to keep pace with the times. For young fund managers born in the Internet age, they have natural curiosity and keen sense of smell, and their acceptance of new things and utilization of new tools will be higher. Therefore, for this, I will not attach too much importance to the fact that fund managers must have worked for five years. As long as the industry is more specialized, the conditions in this respect will be relaxed. For example, I have noticed a big health fund, Guo Xiangbo of Tianhong Pharmaceutical Innovation, who has only been in business for three and a half years, but based on his excellent professional background, this new fund he is in charge of has performed very well this year. In addition, Tian Jun, who has the best value of Sino-Thai Kaiyang, has only been in business for a little over two years, but the performance of this fund has made me shine. 4. The industry of fund investment cannot have no future. There are two stock selection methods in investment, one is called top-down and the other is called bottom-up. I think the same is true of choosing funds. That is, we should start from the general trend and choose the promising tracks in the future, and then choose the funds that focus on these tracks. This is also a manifestation that choice is more important than hard work. For example, the ability is like Zhang Kun, but if it is spread in an unsatisfactory market and segmentation field, even if the ability is outstanding, the estimated result will not be ideal. Zhang Kun&;s E Fund Asia Selection is such an example. Due to the weak performance of Hong Kong stocks, the growth of this fund in the past year is only 8.31%, which is very ugly. If you know my friends, you know that my favorite track is summed up in seven words: &”;Drink, take medicine and bask in the sun&”;. Drinking refers to the big consumption track represented by liquor, taking medicine refers to the big health track represented by medicine, and sunbathing is the new energy track represented by photovoltaic. My fund portfolio is mainly divided into 3 1, of which 3 corresponds to the three major tracks above, and 1 is defensive and temporary. Interested parties canLook at the article I wrote before that disclosed my position without reservation. For example, my three favorite funds are China Merchants CSI Liquor Index, ICBC Frontier Medical and Agricultural Bank Huili New Energy Theme. 5, the fund manager&;s position style can not be too radical. A good fund manager has a unique understanding and control ability for the combination of stocks or bonds in the fund, which is also the core ability of the fund manager. For example, fund managers, represented by Zhang Kun, are practitioners of the value investment concept. They downplay the timing, and the change of holding stocks is small, which is more important than the choice of stocks. If they are optimistic, they will start and hold them for a long time. For example, the multi-factor Tang Xiaobin of Guangfa is another style. His fund is famous for its high turnover, and the fund manager has a very strong ability to choose the right time to keep the profit sustainable by quantitative operation. Several indicators can show the fund manager&;s position style: 1. If stocks account for a large proportion of stocks, the risk is relatively high, the retracement may be large, and of course the upswing will be more powerful. 2. Proportion of Awkwardness Shares From the regular report of the fund, we can see the details of the Awkwardness Shares of the fund, and the Awkwardness Shares have a great influence on the net value of the fund. If the proportion of a single stock is relatively high, the higher the influence of a single stock on the fund, the greater the relative risk. Of course, if the proportion of heavy positions is small, the stocks are relatively scattered and the fluctuation is small, but when the market is good, the increase will be smaller. 3. Volatility The greater the volatility, the more unstable the fund&;s net value is, showing a state of ups and downs. 4. Sharp ratio Sharp ratio is a parameter that describes the relative risk of investment. The higher the Sharp ratio, the higher the input-output ratio, indicating that the fund is more cost-effective. 5. Withdrawal rate refers to the maximum withdrawal rate of the fund from the highest point per unit time, and the smaller the better. Generally speaking, however, the withdrawal rate of industrial funds is relatively poor. For example, the withdrawal rate of China-Europe Medical Health in Gulen has reached nearly 30% in the past year. Summary: The choice of fund is indeed a science. The core of a fund is the fund manager, but the fund manager is not the only factor, and it also depends on the positioning of the fund at the beginning of its establishment. For example, Hou Hao&;s China Merchants CSI Liquor Index, which is a passive fund, mainly tracks the CSI Liquor Index. Due to industry factors, it is basically a typical example of lying flat. Although fund selection cannot be completely quantified and there is no universal rule, some relative principles can still be referenced. In view of the five aspects mentioned above, that is, the scale of the fund company, the working years of the fund manager, the scale of the fund itself, the industry the fund focuses on, the style of the fund manager, etc., we can choose a relatively reliable fund by comprehensive consideration. Of course, the investment charm of the fund also lies in the unpredictable reality. There is no absolute right or absolute mistake, but as long as you are careful, think more and compare more, you can still beat the general trend!