In fact, the first step in choosing a fund is to understand the types of funds, and then you can choose one or more funds that suit you and build your own investment portfolio.

There are many types of funds, which can be divided into different types according to whether they are open, strategies, and targets.

Investors can freely choose according to their own risk attributes.

Here, I will introduce the types of funds in detail.

According to investment strategies, funds can be divided into the following types, with their risks decreasing in order: 1. Active growth funds: with the pursuit of maximum capital appreciation as the operational goal, they usually invest in stocks with high price volatility, and are stock selection indicators.

Data such as earnings per share growth and sales growth are often the most adventurous and enterprising, with the highest risk/reward, and are suitable for adventurous investors.

2. Growth type: With the purpose of pursuing long-term stable value-added, the investment targets are mainly stocks of large and outstanding companies with long-term capital growth potential, excellent quality and high reputation.

3. Value type: The main strategy is to pursue stocks that are undervalued and have low price-to-earning ratios, hoping to find those stocks that have been temporarily ignored by the market and whose prices are lower than their value.

4. Balanced funds: Aiming at balancing long-term capital and stable income.

Usually a certain proportion of funds is invested in fixed-income instruments, such as bonds, convertible corporate bonds, etc., to obtain stable interest income and control risks, while the rest is invested in stocks to pursue capital gains.

The risk/reward is moderate and suitable for prudent and conservative investors.

5. Capital-guaranteed funds: With the goal of protecting investment principal, they combine low-risk income-based financial instruments and riskier stocks.

The way it works is that some of the funds are invested in lower-risk instruments such as Treasury bonds, and some of the funds are invested in stocks. The portion invested in stocks may be determined based on the net value of the fund. The higher the net value, the higher the portion that can be invested in stocks.

In China, capital-guaranteed funds basically have third-party guarantees.

In foreign countries, since derivatives can be invested, the higher-risk investment part of the capital-guaranteed fund can also invest the interest generated by the bond part in derivatives and pursue returns by amplifying leverage operations.

However, investors should be reminded that capital-guaranteed funds cannot be redeemed at any time to protect their capital. If they are redeemed before the expiration of the capital-guaranteed period, they may also face the risk of principal loss.

Regular fixed-amount investments focus on the medium and long term, and it is appropriate to choose fund products with stable long-term performance from fund companies with outstanding comprehensive strength.

Of course, regular fixed quota does not mean there is no risk, so you also need to choose suitable products for investment based on your own risk tolerance.

1. Long-term investment goals: reserve pensions and children’s education reserves.

(Due to the extremely long investment cycle, you can face short- and medium-term fluctuations in stock prices, but pensions and children’s education funds are important reserves in life, so it is not advisable to choose products that are too high-risk.) It is recommended to invest in allocation funds.

2. Short-term investment objectives: to cope with short-term and sudden capital needs.

(The investment period is short, and it is necessary to ensure that redemption at any time will not cause large losses, so choose low-risk varieties.) You can invest in bond funds and partial debt funds.

3. Mid-term investment goal: The cycle is 5-10 years, which is required for starting a business.

(You can choose high-risk, high-yield varieties, and make appropriate adjustments to holding varieties and positions according to the general cycle of the stock market.) To achieve this goal, you can now start to invest in stocks or actively allocate.

I wonder what your risk tolerance is?

Compare the above three items.

Index funds apply passive investment theory to guide their operation, while fixed investment is an operational method designed for long-term investment and vertical diversification of investment risks. It is also an operational strategy designed using passive investment theory.

The author feels that fixed investment index funds are more suitable for veteran investors. They can make timely adjustments according to the bull-bear replacement cycle of the stock market.

In other words, when using passive investment strategies to invest in passive fund types, it is appropriate to take some more active management measures.

Changes in the net value of the Easy 50 Index Fund mainly depend on the trend of the broader market. The underlying index tracked is basically composed of large-cap blue chip stocks and is an index with high long-term investment value.

But index funds are the riskiest type of fund.

This means that according to the changes in the big cycle of bull and bear replacement in the stock market (according to the past domestic situation, each replacement cycle is about a few years), choose the appropriate time (for example, after entering the bear market) to start fixed investment, and stop the fixed investment at the right time (in the bull market stage) and

Begin to gradually redeem.

After the market plummeted in the first half of the year, now is a good time to start placing investments.

I have always insisted on investing in the Yiji 50 Index, but it still depends on your tolerance and do what you can.