I believe most people won't fight by themselves, because they know they don't have the strength, and they will choose to hire professional boxers to fight. The same is true when investing. As a novice, I don't have enough investment ability. If I want to make a profit, the best choice is not to compete with others in the stock market, but to hire professional investors to manage my own funds, that is, fund investment. There are three reasons why novice investors are advised to start with investment funds:
The investment threshold of 0 1 is lower. Compared with other investment varieties, the threshold of fund investment is much lower. Let's make a comparison with stock investment.
In China's stock market, stock investment starts with 1 lot, and 1 lot equals 100 shares. If you buy 100 yuan shares, you need to invest at least 1000 yuan to buy 1 hand. Even if you buy 10 yuan shares, you need to invest 1000 yuan.
Fund investment is not like this. Most funds can be bought at 10 yuan, and even some funds can be bought at 1 yuan. Compared with stock investment of tens of thousands of yuan, capital is not so big for some people who want to participate in equity investment, but more friendly.
From the perspective of investment threshold, it is more appropriate for investors with small amount of funds to invest in funds than to directly participate in stock investment.
As mentioned at the beginning of the article, without professional training, none of us want to fight with professional boxers, and so does investment. Even if you can play, the final result is disastrous, which is one of the reasons why the "28 Law" has always existed in the stock market.
Compared with professional investors, our investment ability is indeed much weaker, but we can find another way to hire other professional investors to participate in the game, that is, to buy funds. Not to mention how much money a fund manager can earn, but it is still much better than most retail investors.
If you participate in stock market investment, you need to know a lot, such as national policies, industry trends, company development and so on. , will have a greater impact on the changes in stock prices. It takes a lot of energy to master these contents completely, and it is necessary to pay attention to the changes of these contents at all times; If we participate in fund investment, we only need to know the investment direction of the fund and the investment ability of the fund manager. When we choose a fund, we don't need long-term management and make friends with time.
I think it's easier to choose a fund than to choose a stock. At worst, you can choose index funds to invest, and the requirements for fund managers are not so high.
Judging from the requirements of investment ability, the best choice for novice investors is to buy funds instead of directly participating in stock investment.
The investment risk is low. There is a saying in the investment circle that "don't put eggs in one basket", because putting them in one basket is more risky.
Fund managers invest the raised funds in different stocks and some other assets, such as bonds and money market instruments. Because they don't concentrate their money on one stock or several stocks, even if the sector plummets, they may offset some or all of the losses because other stocks have positive returns, and the overall losses are small or even profitable.
If you invest directly in stocks, most of the money will be concentrated in one or two or three stocks. Of course, you can earn more income when you encounter a rising market, but once the market is in the wrong direction, there will be higher losses.
Compared with stock investment, the risk of fund investment is obviously lower.
To sum up, due to the low investment threshold, low requirements for investment ability and low risk, it is recommended that novice investors choose fund investment when investing.