In the past two days after the public offering fee was officially lowered, the market has been relatively stable.
I originally thought that institutional funds would smash the market to express their inner grief, but I didn't expect that everyone would come forward.
To be honest, I've always been very open to fee reductions. I welcome the fee waiver because my investment costs will be lower;
I have no problem not cutting fees because most of the fund managers I deal with are smart and hard-working. Every time I talk to them, I will have the feeling of "I really don't deserve to trade in the stock market. As far as I know, it is impossible to trade in the stock market." Make money" feeling.
So if they stay up late and lose their hair, I will pay more management fees and study Buddhism with peace of mind. From my personal point of view, I have nothing against it.
After all, at present, whether it is 1.5% or 1.2%, it will have little impact on my account income.
But now the price has dropped, and today I also dug up some funds with much cheaper management fees to share with you here.
Actively managed varieties with interest rates below 1.2%
In the past two days, 19 leading public equity companies have adjusted products with rates higher than 1.2% to 1.2%. So what I chose today are those products with management fees lower than 1.2%, scale greater than 500 million, and positive returns this year. Regular Stock + Mixed + Balanced Products.
Among the more popular ones, apart from the reform of British state-owned enterprises that competed for the championship last year, many are quantitative funds.
In the past two years, most funds in the small market capitalization direction have performed well. CSI 1000 and CSI 2000 are the direction of institutional participation, while the excess returns of many quantitative funds mainly come from the direction of mid-cap stocks and small-cap stocks, because they want to enter the market. It is indeed difficult to find Alpha in the CSI 300.
Quantitative goddess Yang Meng’s Bodao Sanbai Zhixing has a management fee of 1.1% and has achieved a profit of 1.3% this year. It outperformed the CSI 300 by two points, which is very good.
The most popular quantitative fund recently is China Zhisheng Vanguard. Fund manager Sun Meng’s AI+ quantitative strategy has attracted much attention recently. As a guest speaker at the Beijing Field Excellence Class, Teacher Li was full of praise for him.
In addition to these already relatively well-known quantitative funds, the fee rates of quantitative funds with good performance such as Baode Quantitative Alpha, Huatai Berry Quantitative Enhancement, China Universal 500 Enhancement, etc. are all between 0.8% and 1%.
Also with lower interest rates are the Zhongtai Dividend Series managed by Jiang Chenghe and the Huaxia Pan Series managed by Zhang Chengyuan, with managed interest rates of only 0.6%. This level is very close to mainstream ETFs, and the price/performance ratio is directly high.
Index fund fee butcher
The management fees of mainstream public ETFs are mainly 0.5%, but there are also many interest rate butchers as high as 0.15%.
For example, in the current direction of relatively large trading volume of central enterprise ETFs, the management and custody rates for listed products have been reduced to 0.15% + 0.05%, which is quite cost-effective.
In the mainstream broad-based direction, such as CSI 300, CSI 500, GEM, CSI 800, etc., these funds have also raised their fee rates to 0.15%.
Data from the CICC Research Department shows that there is still a big gap between the 0.15% fee rate and the average ETF fee rate of 0.05%, which is known for its "low fee rate." However, compared with other world-class asset management giants, it is very close.
Since the 1980s, the U.S. mutual fund industry has experienced a relatively obvious process of interest rate reductions. As the A-share market becomes more efficient and effective, excess returns will gradually narrow. In the future, news of interest rate cuts for domestic public funds and even the private equity industry should appear again.
A recent research report by Tianfeng Securities on the process of fee reduction for U.S. mutual funds has become an important reference for us.
The management fees of domestic public funds include part of the tail commission paid to the channel. The actual rates of active equity from 2018 to 2022 mostly fluctuate around 0.96%.
There are almost no tail commissions in the United States, and with the gradual rise of buy-side investment consulting, channel sales fees will gradually be integrated into investment consulting fees and paid separately by investors. If domestic investment advisors follow this model in the future, there should be room for further declines in fund charge rates.
When buying funds, you must be responsible for yourself
There have been a lot of emotional comments on recent articles.
Not making money for three years has greatly dampened everyone's enthusiasm for investment and accumulated a lot of resentment.
When you're angry, you need to vent your anger, so active stock fund managers are the first to be targeted.
The comments reflected "I can accept my own mediocrity, but I cannot accept the mediocrity of fund managers" and great dissatisfaction with the management fees charged.
I'm currently reading "Investing: Charles Schwab's Approach to Continuous Innovation." Charles Schwab, founder of Charles Schwab, writes in the book, “In today’s world, is there any more basic life skill than managing money?”
This sentence touched me deeply. Since investment and financial management is a skill, active funds, index funds, and FOF funds are essentially "tools" that help us make money.
No matter whether I make a lot of money or lose money, the first person responsible is always me who placed the order.
The contract at that time stipulated the rate, and it was reasonable whether to reduce it or not. When you can't make money, you praise others to the sky, but when you lose, you can't afford to lose.
Investment is a process that truly reflects our inner self, and the net worth curve should ultimately reflect a person's character.
Blaming others won't solve the problem. Friends who can finally make money in A-shares must have become a better version of themselves after experiencing a series of ups and downs.
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标签： #Rates #Quantitative #Funds #Equity #Huaxia
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