With the continuous development of economy and society and the continuous improvement of income, more and more people's desire for financial investment is also increasing. As two familiar varieties, stocks and funds are loved by the public, and there will be some comparisons between them. Some people may ask why ordinary people are more suitable for buying funds than stocks.
First of all, what are stocks and funds?
The definition of fund has been discussed a lot before. What we usually call funds mainly refers to securities investment funds. Simply put, it is to let professionals help us invest. We give money to fund companies, and fund companies use our money to invest in assets that they think are valuable, so as to realize "benefit sharing and risk sharing" with fund companies. Stocks are different. A stock is an equity certificate issued by a listed company. Simply put, you become a shareholder of a company when you buy stocks, so buying stocks is more about buying expectations.
As mentioned above, the fund is managed by professionals. Comparatively speaking, it has more investment ability for us ordinary people. After all, our personal investment ability is limited, but the investment and research ability of fund companies is very strong. People are a team. As for stocks, there is a popular saying in the stock market that once you earn two draws and seven losses, stocks fluctuate greatly, which tests the personal ability of ordinary investors and is unlikely to lose money. Therefore, the risk of the fund is relatively small.
There is also a wise saying in investment and financial management, "Don't put eggs in one basket". I believe everyone has heard that this is something that every investor should abide by. From the essence of the fund, by investing in a variety of varieties or directly tracking the stock index, it naturally has the property of diversification, while investing in stocks may require several or even a dozen stocks, and the investment difficulty coefficient is large.
Therefore, relatively speaking, funds can easily diversify investment risks.