Novices can choose funds according to market conditions, that is, when the market conditions are in the bear market stage and bull market stage, investors should try their best to choose stock funds. The following is the method for beginners to choose a good fund compiled by Bian Xiao, hoping to help you!
How do novices choose good funds?
1, capital return rate
The fund withdrawal rate refers to the degree to which the net value of the fund falls from the highest position to the lowest position within a period of time. Generally speaking, the greater the capital withdrawal rate, the greater the capital fluctuation and instability, and the smaller the capital withdrawal rate, the smaller the capital fluctuation and stability.
2. Historical performance of fund managers
The historical performance of fund managers reflects the investment level of fund managers to a certain extent and affects the trend of fund net value. Investors try to choose funds with good historical performance to invest.
3. Fund investment objectives.
The trend of fund investment target will also affect the trend of fund net value and investors' expectation of future income. Investors should choose those funds whose fund targets are on the rise and have great development potential and prospects.
4. The establishment time and rating of the fund.
The shorter the fund is established, the lower the rating and the higher the risk. Investors should choose funds that have been traded for a long time and have been established for at least 1 year and have a high rating.
5. Funds that meet their investment preferences
When choosing funds, novices should choose those funds that suit their investment preferences, not those that are beyond their risk tolerance. Generally speaking, for more stable investors, you can choose medium and low-risk funds, and for more radical investors, you can choose medium and high-risk funds.
6. Standard deviation
The standard deviation measures the fluctuation range of the total rate of return in a certain period. The greater the standard deviation, the greater the possible fluctuation of the future net value of the fund, the smaller the stability and the higher the risk.
How do novices invest in funds?
1. At first it was suggested to invest with a small amount of money. We often say that we can't earn more wealth than we know. Since you don't know much about the fund, you can't make more money on it. If you invest too much money, you will lose your wealth.
2. Learning while investing in funds, the fund market is not static. With the change of time, different knowledge and experience will be produced. Therefore, it is necessary to focus on accumulating fund knowledge in the early stage, which is the simplest and lowest-cost way to enhance cognition.
3. Experience often trumps everything. For novice investors, the experience of investment funds is the most lacking and the most difficult to obtain.
What a novice investment fund needs to know.
1) Capital risk
Many investors think that the fund will make a steady profit, which will have a very serious impact.
Investing in stock funds is an indirect investment in stocks. The stock selected by the fund company has gone up, the fund company has made money, and the net value of the fund is naturally high. On the contrary, the stocks selected by the fund company fall, the fund company loses money and the fund net value is low. Therefore, the stock fund is most affected by the fluctuation of the stock market, and its risk is also the biggest among the funds, second only to stocks.
Because hybrid funds mainly invest in stocks and bonds, the risk is medium to high. Bond funds invest in bonds with low risk. Money funds are low-risk investments and generally do not lose money.
2) Fund investment expenses
Equity funds: subscription fee 1.5%, redemption fee of 0.5% (within one year), and redemption fee is generally exempted for more than three years.
Bond fund: the subscription fee is about 0.8%; The redemption fee is 0. 1%-0.3% (within one year), and it is generally free for more than three years.
Monetary Fund: No charge.
Note: The rates of purchasing funds at bank counters, bank online banking, fund company websites and third-party purchasing websites are all different. There is a discount for buying funds in third-party sales fund companies, which is generally 4-6 fold, while the subscription rate for buying funds by Zhongsheng Wealth Management is 30% off and 60% off.
Fixed investment fund: Fixed investment fund is the simplest fund investment method, and long-term investment time can spread the investment cost equally. When the market falls unilaterally, it is the best time to start a fixed investment. The effect of the fund's fixed investment needs long-term accumulation to see. It is recommended to hold a fixed investment fund at least 1 year.
The types of fixed investment funds can be locked in stock funds and hybrid funds. Don't consider monetary funds and principal guaranteed fund, because the income of such funds is too small to get any income from fixed investment.
3) Select the fund type
The choice of funds should be judged according to their own risk tolerance. If the risk tolerance is strong, equity funds can be given priority. Risk-neutral people should buy hybrid funds. People with poor risk tolerance should buy bond funds and money funds. If you have a strong interest in capital preservation, you can invest in low-risk capital preservation funds and money funds.
Investors should consider the investment period. Try to avoid frequent purchase and redemption in the short term, so as not to cause unnecessary losses.
How do novices choose a good fund?
★ Why can't the fund be purchased at one time?