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Is allocation fund an ideal investment choice?
Is allocation fund an ideal investment choice?

Is allocation fund an ideal investment choice? Today, Bian Xiao will show you. Allocated funds refer to funds with flexible assets, which invest in stocks, bonds and money market instruments to obtain higher investment returns. Its main feature is that the fund can significantly change the asset allocation ratio according to market conditions, and the investment ratio of any kind of securities can be as high as 100%.

Allocated funds invest in both stocks and bonds, and their risk-return characteristics are different from those of high-risk and high-return stock funds and low-risk and low-return bond funds. The main feature of the fund is that it can change the asset allocation ratio more flexibly according to the market situation, realize the investment strategy of advance, attack and retreat, and the proportion of investment in any kind of securities can be as high as 100%. Most of the newly established funds in China are allocation funds. As of August 20, 2004, the allocated fund family had 565,438+0 members. Among these allocation funds, there are two obvious differences in asset allocation styles: most funds hold more stocks, so they perform better when the stock market rises; A small number of funds have conservative asset allocation and hold more bonds, so although they usually lag behind when the stock market rises, they show strong resilience when the stock market falls. Equity funds and allocation funds are the key, which are the proportion, industry and difference of buying stocks, but they are all investing in the stock market.

Due to the continuous rise of Shanghai and Shenzhen stock markets since the Year of the Dog, securities investment has become the hottest topic in the Year of the Golden Pig. The money-making effect of the fund attracted a large number of new citizens to flood in. However, industry experts suggest that in the "Golden Pig Year", investing in a single stock fund is risky. It is a good way to maintain the sustained and stable appreciation of assets by holding part of the allocated funds and rationally matching your own investment portfolio.

There is an old saying on Wall Street called "Don't put your eggs in one basket", which also shows the importance of diversification. However, some fund investors always want to buy the "fastest rising" fund and blindly put all their assets into a stock fund. At the same time, performance pressure also makes some funds increase the proportion of stock positions in exchange for income. Once the stock market falls, these funds encounter greater systemic risks. In the process of the previous stock market decline, the biggest loss was precisely the fund with a high shareholding ratio.

If investing in stock funds is to maximize returns and investing in bond funds is to avoid risks, then investing in allocation funds is to give consideration to both returns and risks. For example, the Galaxy Steady Fund, which has just paid a large proportion of dividends, is such a product. The return rate of this fund in the last year ranked first among Morningstar 70 active allocation fund and Lipper 17 balanced hybrid fund, and was rated as a five-star fund by Morningstar. Observing its position portfolio in the fourth quarter of last year, we can see that its stock investment ratio is about 65%, and the bond investment ratio is about 35%. By compulsory investment in bonds, the investment risk of fund holders is reduced. When the assets of some high-risk funds shrink sharply, Galaxy Steady Fund shows good resilience.

It should be said that it will be difficult for the Shanghai and Shenzhen stock markets in the "Golden Pig Year" to reproduce the opportunity of a sharp rise in the Year of the Dog. It has become an extravagant hope for investors to make huge profits through investment funds. The continuous and steady rise of the market in the shock has become the knowledge of * * *, and it is also the basis for the healthy operation of a mature market. For investors who pursue steady asset appreciation, in such a market environment, allocation funds have become the first choice for investment.

I believe that through the above study, you must know something about this knowledge point. I hope you know more about this knowledge, so that you can sum it up like a duck to water in the market.

Statement: Futures information comes from cooperative media and institutions, and is the author's personal opinion, which is for investors' reference only and does not constitute investment advice. Investors operate accordingly at their own risk.