Fund hedging is to buy funds from different industries to make a risk hedging. Fund hedging is the average risk. For example, when we buy funds, we have been buying funds in the liquor sector. As we all know, the liquor sector is the entire fund sector. If we all buy funds in this sector, then basically these funds are the same regardless of the ups and downs. When it's time to go up, go up together, and when it's time to go down, go down together. The advantage of doing so is that it can make more profits. However, it is also possible to make your own losses even greater, that is to say, if you go up, you can really get more profits, but if you go down, you will lose a lot of money.

If you hedge your risk, you actually reduce the risk. At this time, we will not only buy funds in the liquor sector, but also buy funds in the technology sector or the medical sector, so as to hedge the risks. After one fund goes up, the other two funds may fall. At this time, our gains and losses will become smaller, which is in line with risk hedging. Of course, you can also buy some money funds or bond funds, which are basically stable projects. After buying this fund, the risk will become lower, which is also a way of risk hedging.

The risk of the fund is relatively easy. Choose a favorite fund for each sector and choose to buy it. It should be noted that you can't buy a fund of a sector repeatedly, so the benefits and risks will be even greater. This way is really not very good. Funds that buy multiple sectors can get higher returns in different markets. Generally speaking, this trading method is also the most recommended.

Therefore, fund hedging is actually to select some funds from different sectors, so that when these funds are integrated, their overall risk will become lower, just as some funds join banking stocks, in fact, they are also doing some risk hedging.