Stable Fund Portfolio

Some time ago, a friend complained that the Stable Happiness Fund portfolio was good, but he just didn’t know if there was a better stable fund portfolio. I said, let me write an article to evaluate it, so he came up with this article about stabilizing fund portfolios!

The article is divided into the following parts:

1. What is a stable fund portfolio?

2. Overall evaluation of each stable fund portfolio

3. Detailed introduction of each stable fund portfolio

1. What is a stable fund portfolio?

A sound fund portfolio can be divided into two words, a sound fund portfolio. As the name suggests, a fund portfolio is a combination of many funds. Stability refers to its low volatility. In addition, the function of the fund portfolio is dynamic, and its managers will adjust positions at the appropriate time to obtain better returns.

You don’t need to worry too much about time when buying this type of portfolio, but it’s best to hold it for more than half a year.

This fund portfolio is particularly suitable for two types of people. One type is people who are unwilling to tolerate high volatility.

There is also a group of people who have money that may not be used up within half a year, but may be used for other purposes in the future. If you buy a bond fund for such a long time, you may need to make a judgment based on whether the bond market has performed well recently, and the returns are not very high. If the time period for buying stocks is too short, the risk is too high. Fixed deposit/financial management income is too small and lacks liquidity.

For these two types of people, a stable, low-volatility, high-return fund portfolio is their best choice.

2. Overall evaluation of various stabilization funds

An interesting thing I found in the statistics is that although the names of the portfolios on different platforms are the same, even the portfolios created at the same time have different positions on different platforms, which also leads to differences in returns. I asked the Wenwen Happiness team and the reply was: "There are indeed differences in positions on different platforms. This is related to the rules of different platforms and to slight adjustments after communication with the manager team." Which one do you recommend? If you purchase on a platform, the data of which platform shall prevail. Cross-platform comparisons are not recommended.

So I simply compared the past year returns of the same fund portfolio across 3 or more platforms.

Due to data collection issues, the first two combinations were truncated to 8.13 and the last two combinations were truncated to 8.14.

It can be seen that the difference between the same combinations between different platforms is roughly within 1%. Generally speaking, the higher the returns, the higher the volatility. Unfortunately, some platforms do not have retracement data, so it is difficult to tell whether they also comply with this rule.

However, a 1% gap will not have much impact on the selection of each fund portfolio.

The picture below is a stable fund portfolio I selected based on the conditions of establishment time greater than 1 year, drawdown less than 5% in the past year, and return greater than 6% in the past year.

Among them, the annualized return since its establishment, the maximum drawdown, and the creation time all come from the same platform, and its platform is the platform in the brackets of the annualized return since its establishment. The same goes for prior year returns and prior year drawdowns. Some of these numbers are estimates.

In green are those funds that had higher drawdowns over the past year than a certain fund portfolio but did not return as well and are therefore not recommended, although they may reverse in the future.

With so many fund portfolios, many people may once again be stuck in the dilemma of choosing. The simplest way to choose is to choose the combination with the best return based on the drawdown you can bear.

The image below shows information for different combinations of managers and purchasable platforms.

The ones marked in red are the more recommended combinations.

Interestingly, the only stock market pill portfolio that was managed by a non-fund company was screened out. In theory, since fund companies generally only choose products from their own fund companies, individual managers have more choices than fund company managers. But unfortunately, even with this advantage, due to personal ability issues, the stable fund portfolio managed by individuals cannot be stronger than the investment portfolio of the fund company.

The main reason for this situation is that there are too many fund types to choose from in the stable fund portfolio, including stock bases, debt bases, and some absolute return funds, etc., and the overall risk must be controlled. to achieve maximum yield. These are no easy tasks for a single manager. If there is an individual manager who can build a stable fund portfolio in the future, then this Fund V must be very capable and worthy of attention.

3. Detailed introduction of each stable fund portfolio

1. Egg roll sleep 28 balance (baseline)

The portfolio buys 20% of the CSI 300 and 80% of the pure bond funds, and then checks the position on the 15th of every month. If the asset share of the CSI 300 is greater than 25% or less than 15%, conversion will be performed to restore the proportion of the investment portfolio to 20% and 80%.

This is the simplest strategy for balancing stocks and bonds. Since stock returns are inversely correlated, buying them together reduces risk and provides good returns.

As shown in the figure above, the volatility and returns of this combination are still very good.

But the returns on the CSI 300 and pure bonds are not high. If you are willing to choose better stocks and bond bases, you will definitely get better returns. If you want to build a similar combination, you can follow this idea.

2. I want stable happiness

This portfolio is the longest and least volatile among the robust portfolios. The main idea is to reduce volatility and increase returns through an allocation of stocks and bonds.

The investment portfolio will adjust positions based on data such as asset volatility, risk indicator risk, and adjusted return indicators. For example, the stock market has been highly volatile recently. In order to reduce volatility, the proportion of equity assets has been reduced.

Since the fund portfolio only purchases its own funds, the performance of the company's funds is also a very important indicator.

The Bank of Communications Schroders Fund itself is also very famous, and the active funds under the Three Musketeers of the Bank of Communications are all very good.

It can be seen that the largest retracement of this portfolio was the crash in March 2018. When the decline increased, the portfolio quickly reduced the number of hybrid funds and increased the number of bond funds. It can be seen that its grasp of callbacks is still good. Moreover, the position adjustment of this portfolio also has certain reference significance for whether to reduce or increase the position of stock funds or bond funds in ordinary investments.

The portfolio targets a maximum drawdown of less than 5% and an annualized return of between 6% and 8%. It seems to be doing pretty well now. It is expected that when encountering the stock market crash in 2015 or 2008, the retracement is likely to be controlled within 5%.

3. I want a stable and happy major

This combination is a special version of Alipay, which is different from the happy and stable position adjustment that I want.

In terms of income, the Alipay special version will be higher in most cases. But unfortunately, we cannot know the revenue drawdown ratio of Alipay's special edition. However, since there is not much difference in income between the two, the gap in retracement should not be too big. From the promotional page, we know that its historical maximum retracement does not exceed 3% (no specific number). So if you are willing to take a slightly higher risk, you can choose this combination.

4. Invest in small sure luck/Changan invest in small sure luck

Changan Fund is not large in scale, and there are basically no good stock funds, but it does have some debt funds. Its subsidiary "Da'an" (Chang'an Xinyi) has a certain market reputation in the field of absolute returns. Therefore, it is not surprising that fund companies with better absolute returns can stand out in stable investment portfolios.

From a strategic perspective, it is similar to stable happiness, so I won’t go into details here.

Interestingly, among the three platforms, this combination has the highest revenue over the past year, but the lowest drawdown. So if you want to buy this portfolio, it is recommended to buy from Egg Roll Fund.

5. Phu Quoc sleeps peacefully with your baby

Wells Fargo Fund is also a good fund company. The most famous one should be Zhu Shaoxing’s Fuguo Tianhui. After all, there are very few funds with a 10-year annualized return of more than 20%.

The returns of Tiantian Fund and Qianman Fund's Fuguo Ansuibao in the past year were 9.19% and 8.05% respectively; the maximum drawdowns last year were 1.75% and 1.33% respectively. You can choose based on your tolerance for volatility.

This fund portfolio differs significantly from other portfolios. The above investment portfolio basically chooses active funds, excluding index funds. But Wells Fargo funds use enhanced broad-based indexes.

Its strategy is as follows:

Asset allocation: Use macro timing models to generate risk budgets for stock and bond assets under different scenarios, and strive to obtain stable returns every year;

Meso-level allocation: From a cyclical perspective, look for the rotation patterns of the stock market style, allocate corresponding broad-based targets (mainly index-enhanced funds), and improve the Sharpe ratio of the investment portfolio. "

Wells Fargo also has an active fund portfolio called Wells Fargo Target Volatility 2%, but the time period is too short to assess its quality.

6. Fortunately, the volatility of Xingquan is low and small.

Xingquan Fund is also a very strong fund, and Dong Chengfei’s Xingquan Trend is also a well-known active fund.

This strategy basically allocates stock and bond assets based on risk.

It can be seen that for this stable combination with a large retracement, its maximum retracement is basically controlled by the stock market.

7. Pork belly

The largest fund under Huabao Fund is the currency fund Huabao Tianyi. This fund is the largest currency ETF fund in the domestic fund market.

In addition to ordinary active A-share stock funds and debt funds, the Pork Belly Investment Portfolio also includes quantitative hedge funds and overseas funds. It can be said that the variety is very rich.

Having more less correlated funds is definitely a good thing for stable funds, but it can also be more difficult to get a handle on the proportions of these different major asset classes.

Its fund portfolio strategy is: the fund research team selects outstanding public funds managed by Huabao Fund. The product selection range covers stock funds, hybrid funds, bond funds, currency funds, index funds and overseas funds, including convertible bond funds, new funds, quantitative hedge funds and other funds that adopt unique strategies. However, this portfolio will not invest in closed-end funds and FOF funds.

I hope you can find a stable fund portfolio that suits you~

(Historical returns do not represent future returns)

(This article represents only my personal views and does not constitute any investment advice)

标签： #Fund #Portfolio #Stability #Income #Volatility