Diversification refers to dispersing funds into different fund products to reduce the risk of the whole portfolio.

For example, invest in stock funds, bond funds and money funds at the same time, so that even if a fund product does not perform well, the loss will not be too great.

It should be noted that diversification does not mean buying more funds, but also pay attention to the overlap of fund positions.

Tip:

Enter all your funds and plans, create a fund portfolio, and then you can view the fund correlation.

Risk matching

The risk degree of fund products is different. If you are a friend with low risk preference and buy a volatile fund, your mood will fluctuate with its ups and downs, which is not conducive to long-term investment.

Generally speaking, bond funds and money funds have lower risks, while stock funds and hybrid funds have higher risks.

Therefore, we should match the appropriate fund products according to our own risk tolerance. If the risk tolerance is low, you can choose low-risk fund products to invest.

Batch purchase

There are three ways to buy in bulk: regular quota, irregular quota and irregular quota.

● Regular quota to buy a certain quantity within a specified period of time.

● Irregular quota refers to valuation indicators such as moving average, which means buying regularly, buying less when the valuation is high, and buying more when the valuation is low.

● Irregular quota refers to buying 0.5 of the total amount of 65438+ according to a certain strategy. For example, for every 8% decline, the income is relatively high, but the ability of investors is also high.

This can avoid investing too much money at the high point of the market, thus reducing the risk.

Understand the investment direction

Different types of fund products have different investment directions and different risks. According to your investment needs and risk tolerance, choose the right fund products.

Generally speaking, the higher the stock ratio, the greater the fluctuation and the greater the risk.

In pursuit of long-term stable investment income, you can choose equity funds or hybrid funds; In pursuit of stable investment income, you can choose bond funds or monetary funds.

Three important principles

Do not blindly follow the trend

The ups and downs of the market are unpredictable. Investors should not blindly follow the trend, but should make their own investment plans.

Don't over-trade

Frequent buying and selling will increase the investment cost and reduce the return on investment.

Treat investment risks rationally

Investment risks are inevitable. Only by taking certain risks can we get higher returns, but don't ignore risks in pursuit of high returns.