It is reported that xingquan hui hong a year holding period of hybrid fund is issued, it will be through flexible allocation of stocks and bonds, and strive to achieve controllable overall volatility, while fighting for equity assets to bring appreciation opportunities, committed to become the “ballaststone” of family wealth.
The era of asset allocation has begun, and the “solid income +” product as the bottom position of assets has become a new investment idea for many families.
With the A share market after the Spring Festival into the adjustment range, with the bond base, equity assets enhanced “solid income +” products increasingly favored by the market. Data show that 240 new “solid income +” funds were established in 2020, with a total establishment scale of 371.1 billion yuan.
In the face of the dazzling “solid income +” products in the market, it is particularly important to choose fund managers who have deep research in the fields of fixed income investment and equity investment.
After 17 years of experience in the market, Xingsen Global Fund Management Co., Ltd. (formerly Xingquan Fund) has recently launched a new product called “Solid Income +”, which is highly anticipated. Since March 8, xingquanhui hong a year holding period of hybrid fund (hereinafter referred to as xingquanhui hong) began to issue, by the major asset allocation expert Chen Hong proposed fund manager.
It is understood that the fund will be based on market conditions, in a certain range to adjust the proportion of asset allocation, equity assets accounted for the interval control at 0% – 40%. At the same time, it adopts a combination of qualitative and quantitative research to carry out asset allocation among asset classes such as stocks and bonds.
New options for household wealth allocation
“Many investors subscribe to the financial principle that sound asset allocation decisions determine returns, with timing and security selection playing a secondary role.” This sentence by David Swensen, the godfather of investment, provides a new way of thinking for the preservation and appreciation of family assets.
Stepping into 2021, the difficulty of investing in the stock market has increased significantly, and the human weakness of chasing after the rising and killing the falling will easily lead to large asset losses. On the other hand, the gradual break of capital exchange and the decline of risk-free rate of return in the market also make it difficult for traditional bank financial products to meet people’s demand for returns.
How do you find a product that combines yield and volatility to a certain extent? The “solid income plus” strategy may provide a solution.
“Solid close +” strategy will quickly become popular and popular fund circle with its characteristics of both offense and defense. Specifically, the strategy of “solid income +” refers to the investment portfolio that combines fixed income assets and equity assets when the fund invests, mainly in bond assets (including convertible bonds) and a small part in equity assets such as stocks in order to increase returns.
The “fixed-plus” strategy typically uses bonds as a base position, which is in line with household wealth allocation needs. Bonds, which smooth out portfolio fluctuations, are seen as the “strength” of defensive players. According to Wind data, from the end of 2002 to February 5, 2021, the annual return rate of the CSI All-Bond Index and the CSI Bond Fund Index was 4.21% and 6.17% respectively. At the same time, “solid income +” also increases the allocation of equity assets, so that investors can obtain “addition” on the basis of bond yields.
The “addition” part mainly includes stock enhancement, stock new issuance, convertible bonds and so on. From the perspective of risk-return characteristics, stock investment is expected to have higher long-term returns, but at the same time it faces higher risks, because it is necessary to pay extra attention to retracement control in investment, in order to grasp the investment opportunities with greater certainty. Rejuvenation of stock is a strategy adopted by some partial debt hybrid funds, which has certain certainty of income. The advantage of convertible bonds is that they are both stock and debt. When the stock price rises above the convertible price, the convertible bonds can be converted into stocks and then sold to obtain profits. If the share price falls, the debt nature of the convertible bond comes into play, and the downside space is limited.
Xing Quan Hui Hong is issued is a partial debt mixed fund, is also a typical adoption of the “solid +” strategy of the product. The proportion of its stock investment is 0%-40%, of which the proportion of investment in Hong Kong stock standard stocks accounts for 0%-50% of the stock assets, while grasping the investment opportunities of A shares and H shares.
Through flexible allocation of stocks and bonds, Xingquan Huihong strives to achieve controllable overall volatility, while striving for appreciation opportunities brought by equity assets, and is committed to becoming the “ballaststone” of family wealth.
It is worth noting that the recent establishment of “solid +” funds are increasingly using the holding period model. To this, analyst personage thinks, to each fund share setting shortest hold fixed period, investor can be EXPLAIN at any time during this buy, the investor after maturing can continue to hold, also can redeem at any one working day. Through this kind of setting, can guarantee to lock period fund share is stable, fund manager also can grasp market investment opportunity better.
Considering the profit experience of holders, Xingquan Huihong sets the shortest holding period of one year. Through compulsory holding discipline, it strives to exchange time for space to improve the holding experience.