Before preparing to join the fund industry, look at the current market environment and decide what environment to buy.

If it is obviously inappropriate to buy stock funds and index funds when the stock market is bearish, you should hold bond funds at this time.

If you buy stock funds and index funds in the middle and early stages of the bull market, it is the right way. If I had bought money funds and bond funds at that time, it would have been uneconomical.

In addition, you can also refer to the investment clock model developed by Merrill Lynch in 2004. The theory divides the economic cycle into four stages: recession, recovery, overheating and stagflation. In different economic cycles, investment allocation is also different.

In the recovery cycle, stocks are king. The allocation of periodic growth stock funds, industries can choose financial real estate, high-tech, emerging industries and so on.

In the economic overheating cycle, commodities are king. The goods will be very hot. At this time, we will allocate some cyclical value stock funds, such as nonferrous metals, steel, coal and other commodity industries.

When the economy is stagflation, cash is king. Buy money funds or properly allocate defensive assets, such as funds for industries such as medicine, consumption and public utilities.

In a recession, bonds are king. You can invest in bond funds or appropriately allocate some consumption (food, liquor, etc.). ) to the defense growth industry fund.

Of course, due to different national conditions and different market systems, the Merrill Lynch clock model can't be applied rigidly in China's market, and it needs to be judged comprehensively according to its own market environment and economic cycle.

Analyze one's situation

Before opening an account in an outlet, we will make a risk assessment, which can roughly calculate our risk tolerance level, whether it is steady or radical, and also give a preliminary suggestion on asset allocation.

Everyone must be mentally prepared. Any investment will be accompanied by a certain degree of risk, and high returns correspond to high risks. We must objectively measure our risk tolerance, and people with poor psychological tolerance should not invest in high-risk products. The fund that suits you is the real "good fund".

Secondly, you need to evaluate your financial situation, make a reasonable proportion of investment, and don't invest money that is urgently needed or may be used in the next few months in high-risk products, let alone borrow money to buy funds!

Finally, you need to set your own psychological expected returns with profit targets. What can be bought is an apprentice, and what can be sold is a master. Be sure to choose the right time to take profits, don't be greedy, or draw water with a sieve.