The first is income. If you want higher returns, you may need to buy equity funds. However, although such funds may have high returns and high risks, on the whole, we think that people who want high returns and can resist high risks are suitable for investing in stock funds. If you want to get higher returns and are willing to take higher risks, you can buy bond funds. If you say that your ability to resist risks is poor, you can accept lower returns.
After choosing the type of fund you want to buy, you can choose what kind of fund you want to buy. In most cases, people can resist high risks. If this money is idle money for you, and you can't spend it in three to five years, then you can try to buy some high-risk and high-yield funds. Of course, what kind of fund you want to buy depends on your personal choice and has nothing to do with other people's suggestions. What kind of fund do you think you can afford to buy? The trading of follow-up funds needs a good attitude. If you can't bear the corresponding risks, there may be problems in your operation, resulting in not making much money or even losing money.
After selecting the fund type, you can choose the fund. Take stock funds as an example. In general, equity funds also include industry funds, active funds and index funds. Under normal circumstances, the fluctuation of industry funds will be greater, but this requires more professional investment judgment. If it is an active fund, it depends entirely on the skill of the fund manager. If it is an index fund, you may need to look at the trend of the A-share market. Under normal circumstances, it is up to the fund manager to buy stock funds. We should choose a trustworthy fund manager to see if he has completely experienced bull market and bear market. It depends on whether he has been in business for long enough.
Therefore, if our principal is 4000 yuan, we can buy many types of funds, but what kind of funds we buy depends on our risk tolerance and expectation of income. After choosing the fund type, we can choose the fund manager and then buy the fund he manages.