Many investors will consider this question when choosing a fund: Is it necessary to buy two funds of the same type? Then let's continue to read the following with this question.

is it necessary to buy two similar funds?

Not all funds need to do this. If they are money funds of the same type, there is little difference in risk and profitability between them. Investors just need to choose the one with higher yield. Bond funds are the same as money funds. Of course, if you are a steady investor, buying two bond funds is also an option. If it is a stock fund, a hybrid fund or an index fund, you can choose to buy two, because these funds are risky, and different fund managers have different investment ideas and different fund management styles, which leads to different risks and different returns of the same type of funds. If the difference is large, it is suggested that the same type of funds can buy more, which can balance the risks. However, investors with low risk tolerance need to be cautious.

It should be noted that when investors buy multiple funds of the same type, they should allocate their positions reasonably. For example, if investors are more aggressive investors, they can consider investing more in higher-risk funds and reducing the investment in low-risk funds. On the contrary, stable investors can consider investing more in low-risk funds and reducing high-risk funds. At the same time, investors can also consider the reality of the subject matter of each fund.