In recent months, the market has fluctuated greatly, especially two waves of rapid decline, which has caused great losses to fund investors, and pessimism and fear have not completely dissipated. In order to avoid more losses and calm their fears, the most natural reaction of many investors is to reduce their holdings or completely sell equity funds. But for a long time, it may not be wise to throw out equity funds after the market continues to fall sharply. The experience of the past few months must make fund investors think about how to invest in funds in order to better cope with the extreme performance of the market. In this paper, investors can consider the following practices:
Decentralized allocation of funds with different assets;
According to your investment cycle, investment objectives and risk tolerance, determine a fund portfolio that can make you sleep well;
In the face of large fluctuations in the market, we should carefully grasp the opportunity;
Adopt a fixed investment strategy, the bear market shocks the city to accumulate fund shares, and the bull market cashes in profits;
FOF is a fund investment method, which can be used to smooth the fluctuation of portfolio.
Decentralized assets
One way for investors to cope with the sharp drop in the market is to diversify their portfolios. Although this does not guarantee that you will not lose money, it can reduce the loss. For example, the extreme market from June 2065438 to June 2005, if you all hold equity funds, the decline may exceed 40%. Take 2008 as an example, the decline of equity funds in 2008 was as high as 5 1.42%, but if investors allocate equity funds and bond funds at the same time, the decline can be better controlled.
From June 5438+0, 2008 to February/kloc-0, 2008, both the equity fund portfolio and the decentralized portfolio suffered huge losses, but relatively speaking, the decentralized portfolio suffered relatively small losses, with the former falling by 5 1 .42% and the latter by 28.27%. After the market bottomed out in 2009, the return of diversified portfolio will be lower than that of stock fund portfolio, but much higher than that of bond fund portfolio. It can be seen that diversification can help investors manage the risk degree of portfolio.
When building a diversified portfolio, first consider investing in stocks, bonds and currencies in at least three types of core assets. It may also include other assets, such as real estate trusts and investment funds, which are not always closely related to other core assets. Second, diversify within each asset class to offset risks. For example, stock funds can be subdivided into growth style funds and value style funds. Within bond funds, it can be subdivided into credit bond funds and interest rate bond funds.
There is a combination that can make you sleep well.
In the face of a sharp drop in the market, investors must have a strategy. You should decide whether your strategy should be aggressive, conservative or in between according to the investment cycle, investment objectives and risk tolerance, so as to confirm what allocation ratio is more suitable for you.
If the ups and downs of the market make you overly nervous, then you should consider reassessing the risks of your portfolio and find a portfolio that makes you feel comfortable. We use domestic stock funds, bond funds and monetary funds, as well as American stock funds, to construct three portfolios with different risk levels: aggressive portfolio, stable portfolio and conservative portfolio, and simulate the overall performance of these portfolios from 2003 to 20 15. The different risk-return characteristics of these portfolios can help investors determine which portfolio they hold is safer.
For example, if a radical portfolio is held for a long time from 2003 to 20 15 years, its annualized income can reach 12.47%, and the worst year loss is 36. 16%. If investors can't afford such a big loss in a year, then an aggressive portfolio is not for you. In addition, extending the investment time can also enhance investors' tolerance to fluctuations. The continuous holding time reached 5 years, and the worst average annualized loss was 2.07%. It can be seen that the longer the holding period, the lower the degree of loss. Observe the data of the following combinations, especially the worst possible short-term and long-term benefits, find a combination that makes you feel more comfortable and determine your preferences.
Choose a portfolio that makes you feel comfortable. After determining a suitable portfolio, investors can build it themselves or buy a similar portfolio directly from the fund sales platform. Judging from the current habits of investors, most investors are still accustomed to buying a single fund, or may invest in multiple funds, but they do not consider the types and proportions of funds from the perspective of portfolio, so they may be different from risk preferences. In addition, some fund sales platforms, such as JD.COM and Qian Jing, will recommend corresponding fund portfolios after testing investors' risk preferences, and instill the concept of portfolio investment in investors. In the future, after the public offering FOF is listed, investors can also directly invest in FOFs with different risk levels, so that professional investors can make portfolios, select funds and make portfolio adjustments instead of themselves.
Financial information comes from cooperative media and institutions, and is the author's personal opinion, which is for investors' reference only and does not constitute investment advice. Investors operate accordingly, at their own risk!
Conventional investment
Investors are already very familiar with the concept of fixed investment. If you invest regularly on a monthly, quarterly or yearly basis, you can benefit from the fluctuating market. Fixed investment operation is simple, the key is that in a long-term bear market, investors will doubt the effectiveness of this method, and it is difficult to adhere to it when the market falls.
However, if we insist on fixed investment in the bear market in previous years, investors can get good returns in the bull market from last year to the first half of this year. It is an effective investment method that the bear market shocks the city to accumulate fund shares and the bull market cashes in profits.
As an investment strategy, fixed investment can force investors to invest when the market is at a low ebb and other investors are afraid to wait and see. When deciding when to buy, eliminate subjective speculation, invest a fixed amount on schedule, and get more shares when the price is lower. If you insist on doing this for a long time, the unit cost of your investment fund may be lower than the cost of investing all the funds at once. Long-term fixed investment is really monotonous to kill people's will, but this method is really effective, and investors don't have to doubt this. Fixed investment strategy is that investors respond to market fluctuations in a passive way, diversify their investments in the time dimension, avoid the temptation of trying to make market timing, and thus avoid excessive losses.
Choose your time carefully.
In the face of drastic market fluctuations, it is a natural reaction for investors to seize the opportunity, buy low and sell high, and strive for as much income as possible. Many investors think that they can grasp the market rhythm, avoid the downside risk and expand the account income. In fact, market timing is not an easy task. Whether it is a professional institutional investor or an individual investor, it is difficult to obtain sustained income through market timing. The cost of trying to enter and leave the market is high, and the effect of frequent timing is not necessarily satisfactory. An overseas study shows that in order to make the market timing strategy effective, investors must achieve at least 70% accuracy in forecasting long and short markets.
On the contrary, investors usually increase their stock positions before the market falls and decrease their stock positions before the market rises. Whether it is the domestic market or the foreign market, we can see from history that the stage of the sharp rise of the market is only concentrated in a very small period of time. If it doesn't appear when the market rises sharply, then the effect of investment will be greatly reduced.
Financial information comes from cooperative media and institutions, and is the author's personal opinion, which is for investors' reference only and does not constitute investment advice. Investors operate accordingly, at their own risk!