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When investing, why do most novices recommend that novices start investing in funds?

Let me ask you a question first: If you were asked to participate in a boxing match, would you choose to fight against a professional boxer yourself, or would you choose to hire a professional boxer to fight against others?

I believe that most people will not fight on their own because they know they do not have the strength, but will choose to hire professional boxers to fight.

The same is true when investing. You are a novice and do not have enough investment ability. If you want to make profits, the best choice is not to go to the stock market and compete with other people yourself, but to hire professional investors to manage your funds.

It's fund investment.

The three main reasons why it is recommended that novices start investing in funds are as follows: 01 The investment threshold is low. Compared with other investment varieties, the threshold for fund investment is much lower. Let’s take stock investment as a comparison.

In my country's stock market, the minimum purchase price for stock investment is 1 lot, which is equal to 100 shares. If you are buying 100-yuan shares, you need to invest at least 10,000 yuan to buy 1 lot of stocks. Even if you are buying 10-yuan shares, you need to invest 10,000 yuan. Thousand dollars.

Fund investment is not the case. Most funds can be purchased for 10 yuan, and some funds can even be purchased for 1 yuan. Compared with investing in stocks, which can easily cost tens of thousands of yuan, funds are not that large for some funds, but you want to

It is more friendly to people involved in equity investments.

From the perspective of investment threshold, it is more suitable for investors with small funds to invest in funds than to directly participate in stock investment.

02 Low investment ability requirements As Wenchu ??said, none of us would be willing to box with professional boxers without professional training. The same is true in investment. Even if we can play, the final result will most likely be a loss.

It’s terrible. This is one of the reasons why the “80/20 rule” has always existed in the stock market.

Compared with professional investors, our investment capabilities are indeed much weaker, but we can find another way to hire other professional investors to participate in the game, that is, buy funds.

Not to mention how much money a fund manager can earn, but it is still much better than most retail investors.

If we participate in stock market investment ourselves, there are many things we need to know, such as national policies, industry trends, company development, etc. These will have a relatively large impact on stock price changes. It is quite energy-consuming to fully master these contents.

, and we need to always pay attention to the changes in these contents; and if we participate in fund investment, we only need to understand the investment direction of the fund and the investment capabilities of the fund manager. We do not need it for a long time after we select the fund.

Then go to management and just be friends with time.

Compared with selecting stocks, I think it is simpler to select funds. Even if it is not easy, we can also choose index funds to invest, and the requirements for fund managers are not that high.

From the perspective of investment ability requirements, the best option for novice investors is to buy funds rather than directly participate in stock investments.

03 Lower investment risks. There is a saying in the investment community that "don't put your eggs in one basket" because putting them in "one basket" is relatively risky.

Fund managers will invest the raised funds in different stocks and some other assets, such as bonds, money market instruments, etc. Because the money is not concentrated on one stock or a few stocks, even if the sector plummets,

It is also possible that some or even all of the losses can be offset by positive returns from other stocks, resulting in a smaller overall loss or even a profit.

If we invest directly in stocks, most of our funds will be concentrated in one or two or three stocks. Of course, we can earn more profits when the market goes up, but once the market direction is wrong, there will also be higher profits.

of losses.

Compared with stock investment, the risk of fund investment is obviously lower.

To sum up: Because of the low investment threshold, low investment ability requirements and lower risks, it is more recommended for novice investors to choose fund investment when making investments.