First of all, let's take a look at the fund:
A fund is to pool the money of a group of people, operate it through the fund manager, invest in some assets such as currency, bonds and stocks, and generate income through transactions, so that we can make a profit.
There are many types of funds:
The main categories are Public Offering of Fund and private equity funds;
Small categories are divided into: money funds, bond funds, stock funds, index funds and other different types of funds.
Private equity funds can be understood as a group of bosses putting money together for investment, and Public Offering of Fund is entrusted by our small retail investors to a professional fund manager to help us invest.
We are basically in contact with Public Offering of Fund in the market.
1. Money funds are relatively flexible investments, most of which can be used at will, and a few are dead. The annualized rate of return is relatively low, generally around 2%-3%.
2. Bond funds mainly invest in some government bonds and corporate bonds, with an annualized rate of return of around 4%-6%.
3. Equity funds mainly invest in stocks, and the annualized rate of return is about 10%- 15%.
4. Index funds invest in different indexes, including SSE 50, CSI 500, GEM, SME board, etc. It is also recommended by Warren Buffett.
Of course, in addition to these, there are many different types of funds, and different types of investments have different directions.
Besides not putting all your money in the same basket, the following mistakes should also be avoided!
1, frequent operations, the fund will only get higher returns in the long run, generally at least one year of investment preparation, in order to have good returns.
2, greedy for trouble, one-time purchase. You can buy at one time, but investing in stages can also help spread costs and avoid buying at a high level.
The above two mistakes can be completely avoided through fixed investment. It is a good choice to insist on fixed investment, usually half a month or a month.
According to research, there is not much difference between one vote a week and one vote a month.
For most funds that have been held for 3-5 years or even longer, foundations have good returns. Financial management itself is something that everyone should do and stick to for a long time. When you think of buying funds or stocks as a gambling mentality, you will be happy when you see the gains every day, and you will panic when you see the losses. Frequent buying and selling will increase the handling fee, and this mentality will easily lead to losses.
Any investment has risks, and the greater the risk, the greater the return. Generally speaking, the risks of money funds and bond funds are relatively small, while the risks of partial stock funds are relatively large and the returns are relatively high. When everyone chooses to buy stock funds, it is easy to make the stock market bubble and fluctuate in the short term, but there will still be good returns from long-term holding. To sum up, buying a fund is to help you invest in some assets and increase your passive income, but you should use spare money for investment.