What are the reference factors for buying a fund _ Important skills for fund operation

Many novices will search information online to learn when buying a fund, and some investors will care about when it is appropriate to buy a fund. So what are the reference factors for buying funds? The following small series will answer your questions.

What are the reference factors for buying a fund?

Investment objectives and risk tolerance: determine whether your investment objectives are long-term value-added or short-term stable income, and your risk tolerance. Different types of funds are suitable for different investment objectives and risk preferences.

historical performance of the fund: understand the past performance of the fund, especially the long-term performance, including annualized rate of return and risk indicators. Although past performance cannot guarantee future performance, it can help to judge the ability and strategy stability of the fund management team.

fund managers and teams: pay attention to the experience, professional knowledge and research ability of fund managers and teams. You can refer to the official website of the fund company and the background information of the fund manager to evaluate.

costs and expenses: understand the fund's management fees, custody fees, sales service fees and other possible expense structures. Low-cost funds help to improve the return on investment.

Fund size and liquidity: Pay attention to the size and liquidity of funds. Funds with large scale and sufficient liquidity are usually easier to trade and avoid liquidity risks.

important skills of fund operation

asset allocation: according to market conditions and investment objectives, rationally allocate the shares of different asset classes to achieve risk diversification and return optimization.

stock selection and timing: fund managers need to conduct detailed industry and company research to select potential stocks or bonds. In addition, timing is also the key to fund operation to seize investment opportunities in the market.

risk management: fund managers need to effectively manage the risks of the portfolio, including market risk, liquidity risk and operational risk. Adopt appropriate risk control methods, such as stop loss strategy, risk measurement and diversified investment.

information disclosure and transparency: timely disclose the information of the fund's investment portfolio, performance and expenses to investors, improve transparency, and increase investors' trust.

Is Friday suitable for buying funds?

Generally speaking, Friday is not suitable for buying funds, because the fund is a T+1 transaction. Buying funds on Friday and confirming the share next Monday is equivalent to a two-day blank period. If the stock market is bearish for two days on weekends and the fund is an investment stock, the fund will lose money when buying. However, if you choose a good fund and the fund always goes up much, then you can buy it no matter what day of the week, so when you buy the fund, you should look at it according to the situation.

It is more appropriate to buy the fund several times a week

Generally, it is enough to buy the fund once a week, and it is not necessary to buy it too frequently. If you buy it every day, there is no risk diversification. For example, if the fund is in a downward trend when the market is bad, it is possible to suffer serious losses if you buy it several times a week, because you will lose money if you buy it, and then you will lose money if you buy it.

when investing in a fund, you don't need to buy it too frequently. You should judge whether to buy it according to the fund's market. The essence of buying a fund is to buy it at a low level and sell it at a high level to make money. As long as you choose a better location and a better fund, the possibility of making money will be greater. If you buy a fund once a week, you can spread the risk to a certain extent as long as you choose the right fund. If there is a loss, you should stop.

is the risk of the fund large?

The risk of the fund is generally in the middle. The size of fund risk is related to two factors, the first is the objective factor, that is, the type of fund, and the second is the subjective factor, that is, different people have different understanding of risk.

1. From the objective factors,

The risks of funds are large and small, which cannot be generalized. Different types of funds have great differences in risks and serious polarization. For example, money funds and private equity funds, if the risk of money funds is classified according to the risk level from R1 to R5, it belongs to R1 type, which is what we often call cautious or low risk. However, if the risk of some private equity funds is classified according to the risk level from R1 to R5, it belongs to R5 high risk level, because some private equity funds invest in futures and stocks, and the risk of such private equity funds is relatively large.

2. Subjectively speaking,

Everyone's risk tolerance is different, so everyone's attitude towards risk is different, that is, the size of fund risk depends in part on our subjective factors. It also includes our personal cognitive level, and the risk is negatively correlated with our personal cognitive level.

The higher our cognitive level, the more thoroughly we know about things. Knowing the laws and logic of things, we will not have fear in our hearts, and the risk of things will be reduced relative to individuals. On the contrary, if we are unfamiliar with a thing and don't understand its connotation, then we will become insecure, and we will also have psychological fear and fear of the unknown, so the risk of things will be higher than that of individuals. For example, for an investment genius like Buffett, the risk degree of the fund is relatively low, but for an investment white, then he will feel that the risk degree of the fund is relatively high. Therefore, the risk of the fund has a lot to do with our personal attitude towards risk.