Fund purchase skills:
1, correctly understand the risks of funds, and buy a variety of funds suitable for your risk tolerance. Most of the funds issued are open-end stock funds, which are the most risky types of funds in China today. Some investors believe that the stock market is experiencing a big bull market, and many funds are issued through major banks, so there is absolutely no risk. But they don't know that the fund is just an expert in investing and managing money for you. They want to use your money to buy securities. Like any investment, there are certain risks, and this risk will never disappear completely. If you don't have enough risk-taking ability, buy partial debt or bond funds, or even money market funds.
2. Choosing a fund cannot be cheap. Many investors will choose funds with lower prices when buying funds, which is a wrong choice. Buying a fund must look at the rate of return of the fund, not the price.
Don't just stare at open-end funds, but also pay attention to closed-end funds. Open-end fund and closed-end fund are two different forms, and each has its own advantages in operation. Open can be redeemed at any time according to the net value, while closed has no redemption pressure, which makes its capital utilization efficiency much higher than open.
4. Carefully buy split funds. In order to cater to the demand of investors to buy cheap funds, some fund managers split the funds with good performance into unified net value after operating for a period of time. Most of these funds are to expand their scale.
5. Investment funds should be long-term. Buying a fund is to admit that experts are better at managing money than themselves. Don't speculate on funds like stock trading, or even redeem them after earning a price difference. Trust the fund manager's judgment on the market.