The advantages of fund portfolio investment are mainly reflected in its risk and profitability. For example, portfolio investment can spread risks and reduce their own risks. Compared with one-time funds, the income of funds bought by portfolio is relatively stable.
After the completion of fund portfolio construction, it does not mean once and for all, but needs long-term tracking and monitoring, and dynamically adjusts the portfolio according to the market trend and the management level of fund managers, such as appropriately increasing the allocation of stock funds in bull market and appropriately increasing the proportion of bond funds and monetary funds in bear market.
In the process of dynamic adjustment of fund portfolio, transaction costs will increase because of frequent position adjustment.
Because selling a fund in the portfolio generates a redemption fee, and the redemption rate is related to the length of time that the fund is held. If the holding time is less than 7 days, the redemption rate of many funds is as high as 1.5%. Similarly, frequent position adjustment also means frequent redemption, which will greatly increase transaction costs.
The purpose of investment is to pursue better returns, and the fund portfolio is to combine different types and styles of funds according to the macro situation.
The overall income of the fund portfolio is directly related to the type of fund selected. For example, in a bull market, if the equity and hybrid funds in the portfolio are relatively high, they will get good returns. In recent years, in the white horse leading stock market, if the selected fund conforms to the blue-chip style of the market, it will also obtain considerable excess returns.
That is to say, in the bull market, the fund portfolio can increase the proportion of equity funds and appropriately reduce the proportion of bond funds and monetary funds; In the bear market, bond funds and monetary funds in the fund portfolio can be appropriately increased, and the allocation of stock funds can be reduced. However, it is extremely demanding for investors to accurately judge the general trend. If the investment sentiment is unstable, it is easy to blindly adjust the position because of misjudgment and miss the rising market when encountering extreme market conditions.