In the definition of investment market, there is no absolute zero-risk investment, in other words, there is no investment that never loses money. Even for high-security treasury bonds, fund investment is the same, and the risk cannot be eliminated. But we can reduce the investment risk as much as possible through artificial means, such as choosing low-risk fund varieties, such as adjusting fund positions or diversifying investments.

Diversified investment is to spread the funds and divide them into several or more shares for investment.

There are different types of funds, and we mainly diversify our investments by diversifying the types of funds.

Funds are roughly divided into stock type, mixed type, index type, bond type and currency type, and the investment risk decreases in turn. If your investment style is extreme and you pursue high returns, you can consider allocating more equity funds. If you are afraid of investment risks, you can put the ratio of bond funds to monetary funds higher.

Risks and benefits are always in direct proportion. The higher the risk, the higher the possible income. In a bull market, stock funds help you get more income, and money funds may drag down your income. But if it is in a bear market, equity funds may suffer serious losses, while monetary funds can help you balance some risks. Investment style determines your allocation ratio.

The same type of funds can diversify their investments. If you are keen on the high risk and high return of stock funds, you can choose stock funds in different industries, such as building investment portfolios of various stock funds such as finance, consumption and technology.

Or you can choose funds of different fund companies, funds with excellent performance of small companies and funds with stable performance of large companies.

In terms of time, we can also try to buy the same fund in batches at different time periods. Because the prices of funds are different in different time periods, this can effectively reduce the risks brought by market fluctuations. If it is too much trouble, you can choose the fund to vote.

Buying a fund has the risk of losing money, but we can reduce this risk through artificial operation.