Investment and asset allocation are two different concepts. The purpose of investment is to invest money in a certain variety, and the ultimate goal is to make money. Asset allocation is to plan rationally and choose suitable investment varieties according to the individual's assets.
If we want to make reasonable asset allocation, we need to make further planning according to market conditions. Let's get to know the market situation first.
The fluctuation range is large and the change is fast.
The overall feature of the A-share market is that the market changes rapidly. In the first half of the month, I was still wondering whether the bull market was coming and whether I should choose to enter the market. In the second half of the month, I began to doubt whether the bull market was over. The market changes very quickly, and there is no stable situation. Industry hotspots also rotate very fast, from technology to consumption, to military industry, to medicine and so on.
The market rules have changed a lot.
A-share market is not a mature market, and it is still in the process of continuous development and innovation. 20 19 visited science and technology innovation board, and then adjusted the rules of the New Third Board. Just one year after its listing, science and technology innovation board is facing the reform of the registration system of the Growth Enterprise Market. As soon as investors adapt to the last round of changes in stock market rules, they have to face new challenges.
Valuation differentiation is serious.
The stock market valuation differentiation is more serious, and the risk of buying the wrong stock will increase. In the process of market changes, the market valuation system seems to be re-constructed. For example, the high valuation of technology stocks has become the norm. If you still insist on using valuation to measure individual stocks, you are likely to make the wrong choice.
Faced with such a market situation, if you just pay for a fund and fight alone in the market, the risk coefficient will increase.
From 20 15 to 20 19, the returns of equity funds and bond funds are shown in the following table respectively:
According to the average market level, if you only invest in stock funds, you can finally get a rate of return of 38.93% after five years of investment, which is not bad on the whole. However, in five years, both 20 16 and 20 18 suffered losses, and the investment experience was not very good. Many people may withdraw from the market because of losses, and eventually they will not reach the rate of return of 38.93%. Fund income is relatively stable. At that time, the overall rate of return was relatively low, totaling 25.46%. If we make a simple asset allocation, we will invest 50% of the funds in stock funds and 50% in bond funds. At this time, the income of bond funds can balance the losses of some equity funds at 20 16 and 20 18.
So, this is the meaning of asset allocation. Through rational asset allocation, treat the market with a reasonable and positive attitude and invest rationally.