Manage 1314 fund managers with 10,000 yuan


Hello everyone, I’m Wenzi, a small financial blogger who writes interesting articles carefully.In investment, “do not put all your eggs in the same basket”, I believe we are well aware of the truth.However, recently there is a little brother from Fujian Quanzhou practice, let a person see straight call – absolutely no child!With the principal of more than 10,000 yuan, he bought 1314 funds, which accounted for 1/7 of the total funds in the whole market!This, is not the legend on all corners of the country already long “fund sea king” reappearance all corners of the country?The younger brother said the main reason for investing in so many funds is to diversify your investment risk and not put all your eggs in one basket.And buy 1314 this number, “is not for love, want to use this number to remind myself to hold for a long time, a lifetime”.Xiao Wenzi felt that the way of young people’s financial management is really too “wild”.Dispersive buy fund also has the advantage really, for example saw which fund fell to add a little storehouse, saw which fund rose to sell out some.There was always money to be made during the year.Fund positions on the “absolute dispersion”, can let us not care too much about the rise and fall of each fund, long-term “confused” hold down, large probability will be better than the rate of return of repeated tossing.Previous annual financial reports released by some platforms show that the largest number of users have more than 2,000 funds.However, 10,000 yuan to buy more than 1,000 funds, how much is not very reasonable.Fund products do not hold more the better, scattered allocation also need to have “degree”, too decentralized, wide net type portfolio investment is not very desirable.Today we will discuss the discussion, in the end hold how many funds just appropriate?Don’t put all your eggs in one basket. Don’t put all your eggs in one basket.The best thing to do is to have a balanced allocation, which helps spread the risk.There really is a theory to this.Wenzi had seen a set of experimental data that simulated the diversification effect of “number of shares” on “investment risk”.The experiment is carried out like this: from the market, randomly select N (1 ~ 2000) stocks, equal weight allocation into a portfolio, and then calculate the volatility of this portfolio in 2021.This process is repeated for 1000 times, and the mean value of 1000 times is taken as the average volatility of N stock portfolios.The results are shown in the following figure: It can be seen intuitively from the figure that with the increase of the number of stocks N, the volatility decreases significantly.When the number of stocks is above 50, volatility tends to flatten.Similarly, let’s take a look at the volatility of N partial stock fund portfolios under the same circumstances: we can see that the increase in the number of funds does not have a great impact on the volatility of returns.Especially when holding more than five funds, there is little volatility.Why is that?This is because the fund is originally to buy a portfolio of stocks, less than a dozen, more than a few hundred, its allocation is already taking into account the risk diversification.Owning too many funds, although volatility is controlled, because there is not enough energy to manage, but can not achieve higher returns.This is also the choice of many professional investors in the number of funds: active equity funds managed by 6-7 fund managers as the base position, accounting for 80-90% of the total investment;The remaining 10-20% position, choose the opportunity to counter the trend layout 2-3 industry theme index funds, in order to get higher returns.Holding multiple active funds has two main advantages: on the one hand, the stability of any fund manager with excellent performance in the past can not be completely determined, and diversification can ensure the stability of overall good performance;On the other hand, different ability circles and investment styles of fund managers can be used to disperse fund allocation, so as to reduce the overall net value fluctuation range to a certain extent and increase the “comfort” of short and medium term positions.Before, Shanghai Securities Research News also answered relevant questions. From the perspective of pure risk quantification, the allocation of 5-8 funds can be enough to disperse the downside risk, which is a relatively good number of fund holdings.When the number of funds changed gradually from 1 to 5, the downside risk indicator experienced a rapid downward movement in each holding cycle.When the sample was raised to eight funds, the incentive to spread downside risk was less strong, and adding funds may well have had the opposite effect.Of course, do not buy all funds the same theme or industry, it is best to be able to balance the allocation.03 capital amount is small, can a single fund be suspended?The purpose of our diversified allocation of funds is to disperse risk and increase certainty. This allocation idea should not be different because of the size of the capital.If in a single hanging in the performance of a relatively pull hip star fund, that year’s investment experience, certainly will not be very good.Especially in the case of overweight positions, the pressure will be greater.For every investor, there is no standard answer to the question of how many funds to hold, and there should not be a standard answer.The number of funds with different styles is more than a few, in different market conditions, there may be a better rise, can smooth fluctuations, and to a certain extent, can also reduce the psychological burden of investors worry about personal gains and losses;But at the same time, after the decentralized allocation of the fund, because of the rise of different styles in terms of the rise, so the short and medium term offensive is not enough, will lead to the short and medium term overall performance is more mediocre.Of course, some people might say, there’s no need to be so complicated, just pick the best one or two funds and put them in.It is all right to say so, but it is impossible to make an accurate judgment on which funds are the best in five or 10 years.Therefore, in general, for us ordinary investors, the allocation of 5-10 funds of different styles, from the point of view of the return withdrawal ratio, is a cost-effective choice.

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