In fact, the capital needs of many families have begun to increase after the epidemic. However, compared with the stock market, which is more difficult to invest in, it is obviously more reassuring for some people to "trade" funds.

1. What is the origin of the "military industry" sector, which has risen for a week? In fact, many people choose to invest in funds, but they really need to spend more time to make money. For example, the "military industry" sector, which is very popular recently, has a lot of impressions about it, that is

If you accidentally "move", your purchase volume will drop. So why has it increased frequently recently? Let's take a look at what the "military industry sector" is. Why has it increased so much? We need to know the military industry sector and consumer industries such as liquor and medical care.

It's different. If consumption is about people's livelihood, then the military industry sector is related to the will of the country. Fundamentally, the reason why the military industry sector can rise is that "strengthening the military" is China's long-term goal of national defense development.

-15 years will be a period of harvest and explosion of weapons and equipment. As a special department, military products are purchased by the national finance, so the country’s military expenditure also determines the strength of the military product inventory to a certain extent.

The development of the international situation has also affected the demand for national defense. If there is a demand for weapons and equipment, military industrial enterprises will naturally meet more order demands. From a fundamental point of view, this is guided by the performance of military industrial enterprises.

Both the profit margin and the net interest rate have increased, which is believed to be related to the increase in the prepayment ratio of military industrial enterprises. With more cash flow, the profitability of enterprises has also been significantly enhanced, and there is no possibility of any problems with product quality from the corporate level.

Say, it’s good. So overall, it is indeed a historic investment opportunity for the military industry sector. Second, can I still get on the “military industry sector?”

If you compare the trend of the "military industry sector" in the past, the current "increase" does make people a little afraid to get on the bus.

Why do you say that?

In comparison, the defense industry is more affected by national policies and has developed relatively slowly in the past.

In many cases, investment opportunities are not necessarily the growth of company performance, but the "opportunity theme" that investors seize in policies.

This kind of "increase" caused by telling stories and themes is usually not supported by performance, so the military industry sector usually "rises significantly" but will soon fall back.

Investors familiar with the "military industry sector" will naturally be worried about this situation.

In addition, the military industry sector is currently experiencing great growth, so there is nothing wrong with choosing to invest cautiously.

But judging from the current situation, the rise of the military industry sector is supported by policies and enterprises, which is different from the "news hype" state in previous years.

So I suggest you continue to pay attention.

In addition, paying attention to the development of the past two bull markets, the military industry sector will never lag behind as long as the index rises sharply. In other words, the characteristic of the military industry is that it will not rise in a bear market and will not fall in a bull market.

Just focus on this point. Regardless of whether this year is a bull market or not, as long as the index rises, it is still worth continuing to pay attention to the military industry sector.

In addition, the current valuation of the military industry sector is not high, about 67%.

If the bull market really comes, there will still be relatively large profit margins.

Senior investors can open less positions, while novices can learn first before joining.

3. How to buy military industry funds?

Having said so much, the key is how to buy it.

Investor Erjun does not recommend individual stocks.

For ordinary investors, buying a foundation is more suitable.

If you want to take lower investment risks, you can choose index funds.

Military industry-related indicators include: national certificate military industry, military industry index, CSI military industry, aerospace integration, CSI national defense, military industry leader, etc.

Among them, there are the most index funds tracking Shanghai and Shenzhen military industries. You can choose to buy products from different fund companies on the fund platform.

In addition, those who can bear higher risks can choose active funds.

There are currently nearly 20 military funds active in the market, which can be found by searching for military keywords.