Fund portfolio does not mean that buying several funds together is a fund portfolio, but under the guidance of the general investment strategy, a complete and investment-oriented fund portfolio is constructed, in which each fund performs its own duties and balances each other.
There are at least four steps to build a complete fund portfolio.
The first step: the formulation of investment strategy
Making an investment strategy is like making a basic framework and guiding principles for a fund portfolio. The selected fund must conform to the framework. Regarding the investment strategy, we probably have several directions, 1, and the investment strategy is to realize the long-term stable income of the fund in the future. The operation is relatively simple, and insisting on holding is the key. 2. Rebalancing strategy. During the operation of the fund, the proportion of positions of various assets will change. What we need to do is to adjust the portfolio in time after we find that the position has changed, so as to keep the proportion of various assets in the whole portfolio within a certain range. 3. Achieve a stable income strategy. The strategy is guided by the investment income target, and the maximum extraction of portfolio is controlled at 2%. Of course, there are some other strategies, and investors choose the configuration according to their own needs.
Step 2: Select a combination member.
After the investment strategy is established, it is time to choose a fund. Choosing various index funds to build a portfolio is the simplest and most stable way. However, if you want to get higher than the market average income through the active management area, you can also allocate various active funds. The premise of choosing a fund is that you have a full understanding of the fund, including investment strategy, historical performance, fund managers, fund companies and so on. Screen out a series of funds as alternatives.
Step 3: Create a combination.
After completing the basic screening of funds, build a fund portfolio. As individual investors, we must effectively control the number of funds in a portfolio. Generally speaking, a portfolio of 4 to 7 funds is more suitable. The purpose of building a portfolio is to improve returns under the premise of controlling risks. In order to control risks, it is necessary to minimize the correlation between funds, such as the repetition rate of holding shares, investment strategy, fund types, fund companies and so on.
Step 4: Risk management
Building a good fund portfolio does not mean that it can be done once and for all, but also to test the portfolio. If there is a fund in the portfolio that is seriously lagging behind, it is necessary to consider replacing it to maintain the consistency of the portfolio. Adjusting the portfolio does not mean predicting the market, but solving problems when the portfolio goes wrong. It is unwise to predict the market frequently.
God rewards diligence and insists on the right investment, and the market will eventually give you a return.