It is very important to establish a suitable fund portfolio. In the process of building a portfolio, it is very important to allocate assets in a balanced way. We can take some measures to spread risks, reduce the fluctuation of portfolio and minimize the withdrawal of portfolio. Controlling portfolio exit can effectively improve the investment experience.
Through the investment style box, we will allocate different market values in a balanced way, and try to match the large, medium and small market values according to different market values. This configuration is not easy to miss the bull market.
There are differences between strong cyclical industries and weak cyclical industries in the market. Strong cyclical industries are easy to get market excess returns when they encounter market conditions, but they do not perform well in the off-season. At this time, weak cyclical industries are needed to balance, which will not be greatly affected by the economic cycle, and the market demand is relatively stable. So the performance is relatively stable.
The balance of large-scale assets is mainly to adapt to different markets. For a complete market economy cycle, different types of assets have different performances in different periods. Therefore, it is necessary to allocate assets to various categories of assets in a balanced manner, such as US stocks, Hong Kong stocks, gold and bonds. Different types of assets can adapt to different market environments. At the same time, it also increases the anti-risk ability of the combination.
Of course, not every one of the three balanced distribution methods mentioned here must be used. Balanced allocation can effectively reduce portfolio fluctuation, diversify investment and reduce investment risks. But this kind of balanced allocation is not what we have to do in the process of building a portfolio. We can make a reasonable choice according to our actual risk tolerance.