Champions Curse comes true again and again

category:Finance
 Champions Curse comes true again and again


The next year is often bad

The reporter sorted out the performance of 22 active equity champion funds in the past 22 years. Among the 22 champion funds, the annual highest return rate is 226.24% of the selected Chinese market in 2007, and the lowest rate of return is - 24.52% of that in 2008. In the 22 years, there are only three funds that have won the championship more than once, namely, Xinghua fund, which won the championship successively in 2001 and 2002; Boshi value growth which was listed twice in 2003 and 2011; and China market selection which won the championship in 2007 and 2009.

If we take the performance of fund products in the last year as the evaluation standard, most of the champion funds in that year have gone down the altar. Wind data shows that, excluding the early old funds, among the champion funds available for statistics, the return rate of e funds emerging growth fund and Guangfa double engine upgrading fund is more than 80%, half of the funds performance is mediocre, and even some funds are far behind the average level.

In the view of industry insiders, the reason for the emergence of champion curse is essentially a relatively short period of time such as a year. If you want to achieve outstanding performance, the allocation will be more concentrated, focusing on a certain industry, theme, or even several stocks, resulting in poor compatibility of the portfolio. Once the market style or logic changes, it is easy to change from the vanguard to the backward.

And the appearance of this curse, in the Internet age, increased the investors investment trouble. For those who prefer to buy funds on the list, it seems to be a good choice to chase up the top star funds, but the risk of this investment strategy is quite high. Industry insiders point out that when buying funds, investors still need to use long-term thinking to comprehensively judge various factors such as fund product strategy, investment and research strength of fund companies, and fund manager style, so as to find products suitable for their own risk preference.