You can't just buy one fund. You need to know how to diversify your investment fund. Basically no fund can capture every rising trend. This is because the theme and industry of each rise are different. No fund can quickly and accurately adjust its position to catch up with the short-term or long-term upward trend, even the flexible allocation of funds can not be done, let alone index funds and other funds with specific investment restrictions.
So, how much money should be held and how much money is appropriate?
This depends on personal investment style. If the pursuit of stable income, then a bond, 1-2 broad base index (recommended CSI 300, fundamental fund), an industry or theme index fund (recommended consumption, medicine, banking).
If you want to pursue high returns, then hybrid funds and equity funds are the main ones, and 4-5 are enough.
With too much money, you can't manage your limited energy well. At the same time, it is easy for you to eat the same pot, with ups and downs, and then your income is zero.
The fund needs to be replaced. The fund needs to be replaced because it has a "champion curse" and the fund rotation is obvious. The reasons for this phenomenon are:
Market changes, themes or industries themselves are rotating. For example, cyclical industries have their own economic cycles, and for example, rare earths and military industries that were popular some time ago are not known now, but banks have performed well recently. Policy impact, the government and policies will have a certain impact on the economic trend, interest rate cuts will cause funds to rise, and targeted support for stabilizing housing prices will keep real estate-related funds in place. Value and price are consistent for a long time. When the short-term increase of the fund is too large, the high probability means that the price increase of the investment stock is greater than the value increase, then the later price will definitely fall back, which is consistent with the value. In this way, the performance of this year's champion fund will be average next year. This recognized phenomenon of rotation, you can search the annual fund income ranking yourself, there is absolutely no repetition.
In addition to this rotation phenomenon, the reasons for changing funds include changing fund managers and poor performance (lower than similar ones, not just falling).
Therefore, the fund needs to be replaced, and the replacement cycle is not fixed, depending on the type of fund you hold and your recent performance. For example, the following fund can be held for a long time without replacement as long as its performance changes little.