Some people think that eggs should not be put in the same basket, and it is only half right to buy more funds, because once you hold more than a certain number of funds, the risk will be reduced, but the profits and losses of multiple funds will offset each other, but if you hold too few, such as one or two, the risk will be too great, and short-term fluctuations may lead to large-scale losses.
How much money can you hold at the same time to maximize returns and minimize risks?
According to the big data statistics of professional organization Morningstar, it is most appropriate to hold four funds at the same time. The data shows that when holding a fund with 1, the risk coefficient is above 10, and when holding four funds, the risk will be greatly reduced by 10%, while the risk of holding a fund with 10 at the same time will not be much lower than that of holding four funds at the same time, that is, the best one is about four.
Of course, these four funds can't belong to the same field or the same industry, which will lead to the extremely high repetition of the four funds' shareholding, which is equivalent to no dispersion. The purpose of reducing risks cannot be achieved.
Why are most of the shares held by the same industry the same?
This truth is also very simple. For example, there are so many excellent companies in a certain field, such as good companies in the field of liquor. Speaking of which, there are only a few. In fact, fund managers in this field don't have many choices, and they will basically be configured together. There are only subtle differences in some small and medium-sized companies.
At the same time, the fund holdings of the same fund manager are also highly repetitive. A person's aesthetics, research ability and cognition are limited, and his funds are basically equipped by these companies, unless a fund has special industry requirements.
When ordinary citizens buy funds, try not to hang one fund alone or buy too many at the same time. Control between 3 and 5 is the optimal solution.