Frequent transactions will increase our investment cost, and while paying more subscription fees and redemption fees, we will also miss some benefits because we miss opportunities. Bian Xiao sorted out the meaning and significance of flexible allocation of funds here for your reference. I hope everyone will gain something in the reading process!

Meaning and significance of flexible allocation of funds

Flexible allocation funds, because this variety has no rigid requirements for stock and bond positions, so fund managers can adjust their positions in time according to the judgment of market trends. In other words, the flexible allocation of funds not only requires fund managers to have high stock selection ability, but also tests their timing ability. For the most stable investors, flexible allocation of hybrid funds is a good choice.

There are also many flexible funds in the market. How to choose them?

Looking at performance, long-term excellent performance is the first choice.

Second, look at the fund manager. The fund manager is the soul of a fund. With so many funds, there must be many fund managers. Choosing a fund manager will give priority to working for more than 3 years.

Being able to work 10 years or more is even more awesome. At present, there are 48 fund managers who have worked in the whole market for more than 10 years, and only 4 fund managers exceed the fund return of 10% every year. They are Zhu Shaoxing, Dong, Cao Mingchang and Zhou Weiwen.

For the most stable investors, flexible allocation of hybrid funds is a good choice.

Consolidate the correct concept and method of fund investment

Long-term optimistic about the market outlook, of course, we must attack decisively, but in order to avoid investment mistakes, we still need to review and consolidate the lessons learned in this round of callback. Remember that the current market is still in a state of shock, and you can't make money if you buy it. Before the attack, still want to mention the matters needing attention:

1. Recognize your risk-return preference and choose the product that suits you.

If you can't stand a loss of 5%, it's very important not to invest in the high-risk and high-volatility stock market, and to buy investment varieties suitable for your risk tolerance.

2, adhere to the concept of long-term investment, don't do frequent operations because of short-term fluctuations.

Short-term timing has a low winning rate, and even top investment masters cannot confirm the trend of tomorrow, next week and next month. Invest in things with high probability of being right and stick to the concept of long-term investment.

3. Invest through fixed investment, long-term investment and portfolio investment.

In addition to the long-term investment mentioned above, fixed investment and portfolio investment are also effective solutions to reduce investment uncertainty. Fixed investment can dilute timing, and portfolio investment can achieve risk hedging, with different methods, but both have the effect of reducing volatility.

Choose a fund suitable for long-term holding and fixed investment.

1, giving priority to stock funds and index funds.

One advantage of the fixed investment of the fund is to share the overall cost through multiple purchases. Compared with index funds, equity funds have relatively large fluctuations in net value, which is more conducive to smoothing costs.

2. Choose a fund with excellent long-term performance.

Although the fixed investment can effectively share the cost, if the fund performance is not good, the profitability of the fixed investment will be limited. Therefore, fixed investment also needs to choose a fund with good long-term performance, and there will be better returns in the future.

Fund-related articles:

★ Basic knowledge of fund types

★ Investment Guide for Fund Market

★ Detailed explanation of fund basic knowledge

★ Buy a fund and choose a fund.

★ Common sense of securities investment funds

★ Four common ways to buy funds

★ Market analysis

★ How do novices choose the right fund in 202 1?

★ Basic knowledge of fund product purchase

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