When we invest in a fund, we will want to choose one that is more suitable for us and has outstanding performance. So, how can we novices do a good job of "selecting bases"? Bian Xiao compiled here how to choose the right fund for your reference. I hope everyone will gain something in the reading process!

Funds have broad and narrow definitions. Broadly speaking, it refers to a certain amount of funds set up for a certain purpose, such as trust and investment funds, provident funds, retirement funds, etc. In a narrow sense, it refers to funds with specific purposes and uses. Usually, funds mainly refer to securities investment funds. The income of securities investment funds comes from the future, and the performance of the income is inseparable from the performance of the investment target market, which has certain risks.

Pay attention to fund style

To put it simply, the income of the fund we invest in is arranged by the following two parties: first, the design of the fund terms, that is, the investment objectives, investment scope and strategy of the fund agreed in the contract. The second is the management of fund managers. Within the scope permitted by the contract, the fund manager will adjust the fund investment in real time according to the market conditions, hoping to obtain better performance.

Therefore, it can be said that "fund style" is a direct reflection of fund characteristics.

If the fund style we are concerned about is more stable, then we can build our own fund portfolio more conveniently and strive for better overall performance in different market environments.

Understand the fund style

The investment management of fund managers directly determines the performance of funds in all aspects.

fund manager

Observing how funds match stocks and bonds in different market environments reflects the overall judgment of fund managers on the market.

The industries and stocks that fund managers focus on investment reflect the ability circle of fund managers.

Fund company

There are already fund companies in China that manage investment styles by departments. For example, Guangfa Fund has set up a value investment department, a growth investment department and a strategic investment department. This will help to strengthen investment discipline management and guide fund managers to strengthen their style characteristics.

The investigation of long-term investment performance by fund companies can also prevent some fund managers from changing their styles because of short-term performance pressure.

Investment depends on the long term.

If you have been investing in funds for some time, you may have felt that short-term chasing up and down, chasing up and down may lead to our investment not worth the candle.

At the same time, the existence of fund style also tells us that we should treat the ups and downs of the market rationally.

There are many factors that affect the market, but a considerable part of them are short-term effects, which are not enough to reverse the long-term trend.

Therefore, a good fund manager will pay more attention to his own ability circle, respond to market changes within his own style and choose the right target.

As investors, it is more important for us to stick to it and wait for the roses of time to bloom.

In the past two years, the returns of funds purchased by many investors are generally unsatisfactory. What caused the large losses of most funds? Mars, an analyst at Shanghai Securities Fund Evaluation Center, pointed out that, first of all, the essence of fund products is the combination of securities, and the performance of fund income is closely related to the performance of the underlying market. In the continuous decline of the stock market, it is difficult for equity funds and hybrid funds, which mainly invest in stocks, to achieve positive returns. In the case of rising stock market, most partial stock funds can often achieve positive returns. Therefore, it is impossible for funds to create myths and create high positive returns in the continuous decline of the market in recent years.

From the long-term performance, in most cases, the overall performance of funds is better than that of individual investors, especially in bull markets and volatile markets. For example, in 2006 and 2007, more than 80% of equity funds achieved a return of more than 100%, while the proportion of individual investors was less than 20 12 years. Nearly 50% of equity funds have achieved a return of 5% to 30%. According to the survey, more than 50% of individual investors have lost between 5% and 50%. Therefore, the fund is still a good investment tool for individual investors to participate in the capital market.

All kinds of problems, whether China's stock market construction, economic development or asset management industry, can't be eliminated in a short time, and all need the rationality of the market as a whole to promote it. However, as investors themselves, we must measure our risk tolerance clearly and not blindly listen to the propaganda of sales staff. If your risk tolerance is weak, or the funds you want to use in the short term, you can't invest too much in a single stock fund to avoid being greatly affected by the risk of stock market fluctuations. Therefore, for individual investors, it is more meaningful to have a long-term investment mentality, choose appropriate fund products according to their own risk tolerance and renewal, avoid excessive pursuit of popular funds with outstanding short-term returns, pay more attention to funds with relatively stable long-term performance, and spread risks through fixed investment and portfolio allocation to obtain long-term stable returns.

Little knowledge:

First, we should pay attention to arranging the proportion of fund varieties according to our own risk tolerance and investment purpose. Choose the fund that suits you best, and set an investment ceiling when buying partial stock funds.

Second, be careful not to buy the wrong "fund". The popularity of funds has led to some fake and shoddy products "fishing in troubled waters", so we should pay attention to identification.

Third, pay attention to the post-maintenance of your account. Although the fund is worry-free, it should not be left unattended. Always pay attention to the new announcements on the fund website, so as to have a more comprehensive and timely understanding of the funds you hold.

Fourth, pay attention to buying funds, and don't care too much about the net value of funds. In fact, the fund's income is only related to the net growth rate. As long as the fund's net growth rate stays ahead, the income will naturally be high.

Fifth, we should be careful not to "love the new and hate the old" or blindly pursue new funds. Although the new fund has inherent advantages such as preferential prices, the old fund has long-term operating experience and reasonable positions, which is more worthy of attention and investment.

Sixth, we should be careful not to buy dividend funds unilaterally. Fund dividend is the return of investors' previous income, so it is more reasonable to change the dividend method to "dividend reinvestment" as far as possible.

Seventh, we should pay attention not to talk about heroes in the short term. It is obviously unscientific to judge the pros and cons of the fund by short-term ups and downs, and it is necessary to make a comprehensive evaluation of the fund in many aspects and conduct a long-term investigation.

Eighth, we should pay attention to the flexible choice of investment strategies such as steady and worry-free fixed investment and affordable and simple dividend transfer.

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