At a glance, the investment portfolio
The semi-annual and annual reports of a fund provide a detailed disclosure of all its holdings, which is an important basis for evaluating the fund's investment style and stock-picking philosophy. By examining the industries and characteristics of heavily weighted individual stocks, you can, to a certain extent, discern the investment preferences of the fund manager. For example, if the majority of a fund’s top ten holdings are large-cap blue-chip stocks with little change, it can generally be concluded that the fund’s investment style leans toward stability. You can also assess the fund's level of diversification by looking at the concentration of its holdings. Furthermore, if more than half of the top ten holdings change every quarter, this indicates that the fund adjusts its positions frequently and the fund manager has a relatively short-term trading preference.