List Of The Worst Funds: 12 Public Funds Are Still Losing Money In The Past Decade

With only the last month left in 2020, funds are booming this year. When we look forward, investors want to choose the best fund, but they should avoid the worst fund first.

Some of them have long-term losses, some of which have lost money for 21 years or 5 years.

Statistics show that some B shares and commodity funds have the worst long-term returns.

Industry insiders believe that the frequent replacement of fund managers and the establishment of funds at a relatively high level in the market have a greater impact on the long-term performance of funds.

According to the lessons learned from long-term worst-case funds, the key points for funds to avoid "thunder" are: do not hold commodity funds for a long time, buy index funds at relatively low points in the market as far as possible, and choose funds managed by fund managers with strong ability to obtain excess returns and good persistence.

Information map.

Funds that have lost money in 10 years

Investment fund is undoubtedly a good way of financial management.

In 2018, the "special report on the 20 years of the establishment of public funds" issued by China Securities Investment Fund Industry Association showed that the annualized yield of public offering partial share funds in the past 19 years was 16.18%, which was 8.50 percentage points higher than the average increase of the Shanghai Composite Index in the same period. In the past 20 years, the average cumulative dividend of 10 mutual funds exceeded 10 billion yuan.

However, it is a pity that the long-term returns of 16.16% of the fund holders do not even enjoy a batch of negative returns.

According to the tracking data of Capital Research Institute, there are 12 funds still losing money in 10 years (2010-12-1 to 2020-12-1, the same below).

Among them, shenwanling Xinshen index B (- 56.30%), guolian'an commodity ETF (- 22.98%), guolian'an Shanghai stock exchange commodity ETF link (- 22.52%), Tianzhi low-carbon economy (- 14.58%), Jiashi Hengsheng H-share (- 12.31%), Jinyuan Shunan value growth (- 12.16%), Zhonghai energy strategy (- 7.64%), TEDA Hongli quality life (- 5.42%), Great Wall prosperity industry leader (- 1.47%) Dacheng wealth management 2020 (- 1.19%), Minsheng plus bank selection (- 0.86%), Soochow industry rotation (- 0.46%).

Among the 12 10-year negative return funds mentioned above, 4 passive index funds are included, among which 3 (shenwanling Xinshen index B, Guolian an commodity ETF and Guolian an Shanghai stock exchange commodity ETF link) rank among the top three in terms of loss, while one QDII fund (Harvest Hang Seng H share) is also a passive index fund.

One partial debt hybrid fund (Dacheng wealth management 2020), three flexible allocation funds (Tianzhi low carbon economy, TEDA Manulife quality life, Great Wall prosperity industry leader), and four partial equity hybrid funds (Jinyuan Shunan value growth, China Shipping energy strategy, Minsheng Jiayin selection, and Dongwu industry rotation).

They include the main types of securities funds except monetary funds and pure debt funds.

It can be seen that Lei Ji is almost everywhere.

So, why do some funds still lose money in 10 years?

Among them, 4 fund managers have little to do with fund performance. For example, harvest Hang Seng H-share was established in September 2010 and was set up at a high point. The performance of the H-share index has been poor in the past 10 years, and the proportion of bank stocks is relatively high, which has been a bear market in finance.

In the past 10 years, shenwanling Xinshen index B is the largest loss passive index fund. In 10 years, not only did not make money, but also lost as much as 56%. Due to its special setting, class B shares have enlarged the income and loss. As a classified fund, it will be cleaned up completely at the end of this year, and there will be no such products in the future. Therefore, we can ignore the discussion.

In addition to 4 passive index funds, there are 8 actively managed funds. Their performance is closely related to fund companies and fund managers.

For example, Tianzhi low-carbon economy. Zeng Linghua, director general of Haomai fund research center, pointed out that since 2010, after five fund managers, the ranking of the same kind is not good, and the ranking of their tenure is around the last third.

In the past 10 years, there have been six fund managers.

What makes people feel most is the rotation of the industry in Soochow. When the star fund was issued in April 2008, the scale reached 3.1 billion, which was quite high in those years. Unfortunately, it was the highest scale when it was established.

According to Zeng Linghua, the performance of Soochow was also related to the change of personnel.

Mr. Xu was the general manager of investment. Wang Jiong became famous in the first World War in 2008 and made a comeback in 2010. In those years, the "three swordsmen of Soochow" became famous for a time. This is also the reason why the first round of the industry in Soochow was able to suppress many big name companies such as Boshi and Xingquan. In 2012, Wang Jiong and Xu Jianping left their posts successively, almost ushering in the darkest moment of Soochow Fund. "

Fund with loss in 3-5 years

Zeng Linghua believes that funds with more personnel changes are difficult to achieve sustained good performance. And the general performance of double fund managers is also difficult to have a good performance.

Zeng Linghua pointed out that if fund managers make mistakes, there is only one final performance, that is, buy at a high point and sell at a low point. Without in-depth research on individual stocks, it is easy to catch up, and it is easy to dare not take it when falling, or to increase positions. Fund managers without distinctive characteristics may not have thought clearly about their investment. What kind of money do you make, what is your resource endowment, and what are the reasons for making continuous money? These are worth asking forever.

According to the tracking data of the 21st Century Capital Research Institute, a total of 191 funds (a | B | C shares are calculated separately, the same below) have returned losses in five years (2015-12-1 to 2020-12-1, the same below).

Passive funds and QDII account for the largest proportion.

Most of the top five-year loss funds are passive funds, accounting for about two-thirds of the top 50. Among them, the top 19 shares are in category B.

In recent years, the largest loss of 52.5% was B share. Media B (- 89.60%), sports B (- 87.34%), high-speed rail B (- 82.12%) and military B (- 81.17%) followed closely.

50% of the funds have lost between 50% and 50% in the past 50 years, and more than 30% of the funds have lost money in the past 50-30 years.

However, there are 165 funds that have lost money in three years (from December 1, 2017 to December 1, 2020, the same below). QDII and passive funds are also in the forefront.

In recent three years, Zhongrong iron and steel B and Penghua iron and steel B ranked the top in terms of loss, which were - 78.65% and - 64.37% respectively. In addition, high speed rail B (- 62.65%), coal B (- 58.49%), Cathay Pacific commodities (- 54.08%).

Nine funds lost more than 50% in three years, 13 funds lost 40% - 50%, 10 funds lost 30% - 40% and 20 funds lost 20% - 30%.

Zhang Ting, chief strategist of GESHANG financial management, concludes that the loss of funds over three years mainly comes from the following aspects: on the one hand, commodity funds will fluctuate greatly with the economic cycle, and it is difficult to have sustainable income after long-term holding, and it is more likely to take a roller coaster, resulting in poor long-term holding income; second, fund managers are frequently replaced, even 10 Replacing the products of 10 fund managers in a year will lead to the continuous instability of fund style and performance, difficulty in obtaining excess returns and weak long-term performance; thirdly, the fund is set up at a relatively high level in the market, such as Hang Seng H-share, which was established in 2010. Due to passive tracking of the Hang Seng H-share index, the index has not yet returned to the market peak at that time, resulting in the fund has not been there Get a positive return.

Zeng Linghua thinks, "buy fund, might as well look at the rearview mirror. Look at the rankings to buy funds is not reliable, do not look at the rankings to buy funds is particularly unreliable. New fund manager still wants to pull out to walk say again, not afraid to miss, afraid to buy wrong

Zhang Ting believes that for investors, lightning protection needs to pay attention to several points when buying funds: first, select funds managed by fund managers with strong ability to obtain excess returns and good sustainability. Once the fund manager leaves, special attention should be paid to the ability of the new fund manager. Once the excess performance declines, it is necessary to redeem them; second, it is not recommended to long-term commodity funds The third is to buy index funds at relatively low points in the market, especially those with cyclical attributes.