For example, since last year, the performance of stock funds has been very eye-catching, which is directly related to the performance of the stock market. When the stock market rises, the net value of stock funds grows faster.

Conversely, when the stock market adjusts, stock funds will inevitably experience larger declines.

Therefore, stock funds are more suitable for investors who like to pursue high risks and have a high risk tolerance.

It may not be a good choice for those with weak risk tolerance.

As an investor, before purchasing a fund, you must first analyze your own situation.

Including one's own risk preference habits, whether the attitude towards risk is averse, neutral or favorable; the financial status of the individual or family, whether they can withstand greater risks; the individual or family's future needs in terms of house purchase, car purchase, children's education, pension, etc.

Plan etc.

After determining the risk tolerance, the proportion of each type of fund should be determined based on the current market conditions.

If your risk tolerance is low, you should allocate more money market funds and bond funds; if your risk tolerance is high, you can consider allocating more stock funds and hybrid funds.

In addition, when the stock market is improving, the proportion of stock and hybrid funds should be increased; when the stock market is facing an adjustment, more money market funds and bond funds should be turned.

For investors with large amounts of funds, they should pay special attention to moderate diversification of investments.

The so-called diversification includes both diversification among different fund types and diversification among the products of different fund companies.

For portfolio investments, the lower the correlation between the selected funds, the more effective risk diversification will be.

The last step is the choice of specific fund types.

Investors can combine some fund rating reports to choose products from excellent fund companies.

What should be noted at this time is that the performance of the fund has obvious stage characteristics. It depends not only on its recent performance, but also on its performance over a longer period of time, as well as the stability of its performance.

In addition, funds are different from stocks and are not suitable for frequent trading.

Compared with stock trading, the subscription and redemption fees of funds are relatively high. If you enter and exit frequently, there will be high transaction costs.

Secondly, the subscription and redemption time of funds is not as fast as that of stocks.

Therefore, the correct mentality when buying funds should be to choose carefully and invest for the long term.