A good allocation of funds can achieve a win-win situation, especially in the case of large market fluctuations and unclear direction. On the one hand, it can resist the risk of market fluctuation, on the other hand, it can obtain relatively stable long-term income. So, how can we allocate funds in a balanced way?

First, allocate funds in a balanced way according to market value. According to the different market value, funds can be divided into large, medium and small-cap stocks. When investing, try to combine funds with different market values, such as large-cap stocks plus bond funds and money funds. This strategy of allocating funds by market value is more suitable for people who lack industry knowledge and usually have little time to watch the market.

Second, according to the balanced allocation of cyclical industries, real estate, steel, chemical and other industries are strongly affected by the economic cycle, and their profits and stock prices will change periodically. We call it a strong cyclical industry, while industries such as medicine, food and beverage are weak cyclical industries. When the market comes, it is easy for the plate of strong cyclical industries to obtain excess market returns, so choose cyclical industries for balanced allocation, such as medical theme plus real estate finance theme, bond fund, money fund and so on. In fact, this configuration is more suitable for investors who have certain analytical ability on market environment, industry characteristics and policy support.

If you can learn the balanced allocation of funds, no matter what kind of market, your fund portfolio may not get super-high excess returns in the short term, but in the medium and long term, there will be very good accumulated returns, and it is no problem to stay in the middle and upper reaches.