1. High yield

The higher the income, the better. The more the better.

2. Low-risk small retreat

Secondly, not only the income should be high, but also the refund should be small. It is best to increase steadily, for example, by more than 1% per month. If the income can't exceed 65,438+0%, or on the contrary, it will decline (retreat), then they will definitely not accept it.

And this kind of "high yield and low retracement" is expressed in financial terms, that is, the Sharp ratio is relatively high. This is also the goal pursued by many fund managers.

So I'm going to talk to you about this topic today.

Generally speaking, the most common way to reduce retracement is to increase the position of bond assets in the portfolio.

Although the increase of stock assets is the highest in the long run, in the short run, the annual fluctuations of 10% and 20% in the stock market are normal.

Take the stock fund index (H 1 102 1) as an example. The cumulative increase since 10 has reached 6 16.54%. However, in 2008 and 20 15, the maximum withdrawal range of the index basically reached 40%.

Of course, if investors can withstand such fluctuations, it is also possible to invest only in partial stock funds or stocks.

However, most people can't bear this kind of fluctuation, because when the account assets are withdrawn to 30% and 40%, it is good not to sell and avoid risks. It is impossible to add positions and it is difficult to make rational investments.

Therefore, for most people, increasing the position of bond assets is a more practical method.

Because the trend of bond assets is usually very stable. Sometimes the stock market plummets and bonds rise against the trend.

Take the bond fund index (H 1 1023) as an example. Although it can't compare with the stock fund index (H 1 102 1), its trend is really stable.

Seeing this, some small partners may say that increasing the position of bond assets can reduce the retracement, but it can not significantly reduce the degree of retracement of the portfolio.

For example, suppose the annual volatility of the stock market is about 30%; The annual volatility of bond assets is around 4%.

If an investor has 50% stocks and 50% bonds in his portfolio, the volatility of this portfolio is (30%×50%+4%×50%)= 17%.

The volatility of 17% is still very high.

Therefore, in order to significantly reduce the withdrawal degree of portfolio, we can only continue to increase the position of bond assets.

For example, take the "safe income" combination in Sansi Investment APP as an example. This combination is to allocate 80% of the funds in bond assets, and the other 20% of the funds rotate with market changes.

In the combined operation of 1740 days, the withdrawal of products was really well controlled, and the annualized rate of return of 7%-8% was realized on this basis.

Of course, some investors may feel that such a rate of return is not high.

In fact, high returns are accompanied by high risks. If you want to get high returns, you must bear high fluctuations during the investment period, so for those investors with low risk tolerance, such returns are high returns.

Finally, a little reminder, although in theory, when both stocks and bonds are in a falling state, the return of the portfolio may be negative, but from the historical back test data, if investors hold the portfolio for more than 2 years, there is a great probability that they can achieve positive returns.

Therefore, the combination of "peace of mind" is very suitable for those investors with low and medium risks and investment cycle of more than 2 years.