Investment has countless ways, but risk is the foremost one.

Data shows: Among nearly 500 public mutual funds that adopt quantitative strategies and use quantitative models for stock selection, about 72% of the funds have had negative returns since the beginning of this year.

What happened to quantitative funds? Are they about to fall from the altar?

Background and data

Quantitative funds, which have always been a source of pride for people, have been disappointing in their performance this year, with most of the returns being negative. Are quantitative funds about to fall from the altar?

Quantitative funds mainly use statistics, mathematics, finance, etc., to construct a stock selection model, and then complete stock selection based on big data.

This new type of stock selection method has been gradually favored by investors in recent years and has always achieved good results, but this year, it has gone out.

Let's first take a look at the legendary fund that is widely talked about in the fund circle. The return rate of Jinyuan Shun since the beginning of this year is -9.79%, which is also the first year that Jinyuan Shun has had a negative return.

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Let's take a look at the Guojin Quantitative Multi-Factor managed by Ma Fang. The return rate since the beginning of this year is as high as -17.52%, which is considered to be a relatively poor return.Finally, let's take a look at the China Merchants Quantitative Selection managed by Wang Ping: Although the return rate has also been negative this year, it is relatively outstanding compared to the former two, with a decline of only 3.76%, and the drawdown control is very excellent.

The above three funds are all outstanding in the public cemetery quantitative field, but this year, they have all created negative returns, which shows that the quantitative market this year is very difficult.

What is the reason for the decline of quantitative funds this year? Some relevant professionals pointed out that due to the national team's large purchase of CSI 300 ETF, CSI 500 ETF, etc., at the beginning of the year, it reduced the liquidity of micro-plate stocks. There is also a view that the decline of quantitative funds stems from the small plate stocks' clustering, without more funds to take over, leading to a collapse. Regardless of the reason, this situation is only temporary, and from a long-term perspective, it will not have a great impact on quantitative funds.

Secondly, on July 29, the market regulatory authority increased the high-frequency trading fee from 0.1 yuan per transaction to 1 yuan per transaction, a tenfold increase.This measure aims to shift and guide investors from short-term trading to long-term trading.

Quantitative funds are inherently characterized by a quick-in-quick-out style, and this measure has greatly reduced the excess returns of quantitative funds, which can be said to be a significant blow to them.

As a result, quantitative funds are likely to perform poorly in the short term.

Quantitative Fund Future Development

Although there have been a series of policies suppressing quantitative funds and unfavorable factors in the near term, which greatly hinder the development of quantitative funds.

However, from a long-term perspective, quantitative funds are also a part of the market, and to some extent, they increase market liquidity and efficiency, and it is necessary for quantitative funds to continue to exist and develop.

At present, due to the sluggish investment market and low investor sentiment, many policies have been introduced for regulation. When the market conditions improve later, the relevant policies will be perfected.

Therefore, looking at it from a long-term perspective, this is just a small interlude in the development process of quantitative funds, and it will not fundamentally change the quantitative funds.Summary

Quantitative funds are a component of the investment market. Short-term obstacles are temporary, so there is no need to be too pessimistic about quantitative funds.

Looking from different perspectives will lead to different conclusions. Regardless, it is necessary to view them positively.

So, do you think quantitative funds are reliable? Welcome to exchange ideas.

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#Fund #Public Offering Quantitative Fund Performance is Poor #Quantitative#