In recent years, with the continuous opening of China's capital market, more and more investors have begun to pay attention to overseas markets. Among them, QDII fund has become a common investment method. Relatively speaking, QDII funds have certain advantages in overseas asset allocation and risk diversification, but whether they are suitable for long-term holding needs to be analyzed and discussed.

I. Definition and characteristics of QDII funds

QDII is short for qualified medical institution investors, namely qualified domestic institutional investor. QDII funds refer to funds issued in China, which can be invested in global assets through investors' RMB accounts. Its main characteristics are overseas asset allocation, risk dispersion and asset dispersion.

Second, the reasons why QDII funds are suitable for long-term holding

1. Opportunities to take advantage of overseas markets

Compared with China market, opportunities and risks in foreign markets are more diversified, and QDII funds can gain more opportunities by investing in overseas markets. Throughout history, in the long run, the income of overseas markets is more stable than that of domestic markets, and the long-term compound rate of return is also higher.

2. Risk diversification

QDII funds contain many assets in different industries, different regions and different currencies in overseas markets, which means that they have better risk diversification ability than single investment products. Once the investment in a certain region or industry has problems, QDII funds will not be fatally affected.

3. The assets are more widely distributed

QDII funds have a wide range of investments, which may involve stocks, bonds, portfolios and other assets. Feasible diversification can effectively control the risk of the fund. In the era of drastic changes in the market environment, an effective portfolio is a good choice.

Third, QDII funds suitable for long-term holding factors

1. Balance between risk and reward

Although QDII funds have a good rate of return and risk diversification in the long run, it should also be noted that the income of QDII funds is also related to the fluctuation of foreign exchange rate and foreign risk factors. Therefore, investors need to strike a balance between risk and return.

2. The influence of market environment

With the fluctuation of domestic and international markets, the investment performance of QDII funds also changes. In a special period, the investment environment of domestic and foreign markets has changed. When choosing whether to hold it for a long time, we should make reasonable investment adjustments and strategic changes according to the market environment and asset performance.

3. Enterprise and management team of the Fund

Enterprises and management teams of QDII funds play a very important role in the fund industry and market. The industry research, investment analysis and management decisions provided by fund companies will directly affect the performance of the fund. Therefore, investors need to pay special attention to and understand the historical records and experience levels of relevant companies and management teams when choosing.

To sum up, the long-term risk and income balance factors of QDII funds are complex, so it is necessary to focus on the market environment and the enterprise management level of the fund, and grasp the risk control and asset allocation capabilities. In the long run, QDII funds' diversified assets and venture capital in overseas markets have stable and long-term stable performance ability and certain long-term investment potential.