How Moomoo Choose a Fund to Distribute: Moomoo's Simple & Professional "6P" Screening Method

Selecting the right fund to distribute can be challenging, especially with complex data and a wide range of choices. To address this, moomoo uses a simple and professional 6P screening method to filter funds more efficiently.
Please note that all investments carry risks, including market volatility, even when you choose a suitable fund.

What is the 6P method?

The 6P method evaluates funds from six key dimensions:

Performance, Portfolio, People, Philosophy, Process, and Parent.

1. Performance

What we Look at? 

Evaluate both short-term returns and long-term performance over three to five years. Paying attention to both returns and risk, including how the fund manages drawdowns during market downturns.

Reminder:

A fund with strong short-term gains but a poor long-term record is typically not considered.

A fund with high returns in bull markets but large drawdowns in volatile periods is typically not considered.

2. Portfolio

What We Look at?

Review the fund's holdings and asset allocation. Check whether investments are diversified and consistent with the stated strategy.

Reminder:

Funds with excessive exposure to their top holdings may be more vulnerable to market fluctuations.

3. People

What we Look at?
Consider the fund manager's experience, the stability of the team, and the consistency of their investment style.

Reminder:

Frequent changes in fund managers or managers responsible for too many products may undermine performance stability.

4. Philosophy

What We Look at?

Understand the fund's investment philosophy. A clear, long-term, and rational approach is preferred.

Reminder:

Be wary if the fund's actual investments do not match its stated strategy.

5. Process

What We Look at?

Evaluate the fund company's investment process, including the decision-making framework and risk control measures.

Reminder:

Avoid funds where investment decisions lack a transparent and systematic process.

6. Parent

What We Look at?

Assess the reputation, management capability, and historical track record of the fund company.

Reminder:

Focus on funds managed by established and reliable institutions.

 

Summary

moomoo applies the 6P method to rigorously screen global funds, listing only those with solid long-term performance, clear strategies, and stable teams. Users can further select from these funds based on their risk tolerance, strategy preferences, and market conditions.

Learn more about mutual funds >

 

[Risk Disclaimer]

All investments in funds involve risks. The 6P screening method is intended to enhance fund selection efficiency and minimize potential pitfalls. However, it cannot fully eliminate investment risks caused by market volatility. Past performance does not guarantee future returns.