How to judge fund style

There is a very key word in fund investment, which is “style”.

The usual logic is to divide the market style into “growth style” and “value style” according to the valuation level and the growth of main business indicators .

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The value style is mainly characterized by focusing on “low valuation” and “margin of safety”; the growth style is characterized by high growth, high valuation and high volatility.

If we use 300 growth and 300 value to observe, we can see that the 300 growth has fallen by 32.73% this year, and the 300 value has fallen by 20.67%.

The two industries representing growth, medicine and technology, rose and fell by -29.5% and -37.41% respectively.

The consumption that has recently entered the hammer mode can actually be regarded as growth. As of October 25, consumption fell -24.41%.

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300 Growth and 300 Value are both based on the CSI 300 sample space, and then calculate the style score according to the growth factor and value factor , and select the 100 stocks with the highest growth and value scores.

Among them, the growth factors mainly include the growth rate of main business income, the growth rate of net profit and the internal growth rate . These sample stocks have good growth potential.

The 300 Growth is selected from the CSI 300 Index, covering multiple industries. The five industries with the highest weights are power equipment, electronics, food and beverage, pharmaceutical biology, and non-ferrous metals. The growth of its sample stocks is more prominent.

The top ten constituent stocks of 300 Growth (000918) are ↓

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As of October 25, the valuation of 300 Growth was 16.97 times , ROE22.5; dividend yield 1.04%

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The 100 constituent stocks selected according to the value factor make up the 300 value.

There are four main elements of the value factor :

①Dividend Yield (D/P)

②Ratio of net assets per share to price (B/P)

③Net cash flow per share to price ratio (CF/P)

④ Earnings per share to price ratio (E/P).

According to these four factors, China Securities Index Company scored 300 CSI 300 constituent stocks, and the top 100 scored 300 value constituent stocks.

The 300 is value-heavy, with the main constituents being banks, insurance, real estate, and securities.

300 value (000919) top ten sample stocks are

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The value is 6.2 times, the ROE is 10.7%, and the dividend yield is 6.71%.

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Knowing the style of the market is fundamental to investing.

Looking at the picture above, we can easily see that the market is switching between different styles, 300 growth outperforms 300 value, and the ROE of 300 growth is also significantly higher than 300 value.

In the 5-year annualized rate of return, 300 growth is 3.46%; 300 value is -2.75%.

One-year annualized volatility, 300 growth is 22.58%; 300 value is 18.19%.

The value of 300 with high dividend and low valuation label is relatively stable; 300 growth is more volatile.

For the four combinations that I am concerned about, click the blue font to enter the attention.

1) Enjoy the shade under the big tree (equity and debt balance strategy, balanced type)

2) Take the initiative (stock strategy, active)

3) Good consumption under the big tree (consumption direction)

4) Steady progress (bond strategy, robust)

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