How to screen out consistently outperforming funds?
By:
24 September, 2024
Our results show that it is very difficult to select funds that consistently outperform their peers and the market, whether based on historical performance, size or duration, it is difficult to meet expectations, and the effect of random selection in the whole market is not different.
Therefore, for investors, they must not blindly follow the trend of funds based on simple indicators, but should rely on professional investment institutions, deeply understand the investment ability of fund managers, long-term track the standardization of public funds and the professionalism and stability of investment research team personnel, so as to avoid the disturbance brought by the randomness of performance on the selection of funds and the impact of fund personnel changes on the performance stability. To screen out funds with long-term stable performance.
In addition, investors can also choose index-enhanced funds. We conducted statistics on the performance of all-market index-enhanced public funds and found that the probability of index-enhanced funds consistently outperforming market indexes is higher than random probability, and private funds have a similar conclusion. Finally, if you can better grasp the market style and sector opportunities, through the decentralized FOF allocation, you can also get a good return.
