How do novices play with money?
First of all, for a novice, you have to know what a fund is and the differences between different funds. To put it bluntly, the fund company concentrates everyone's money and invests it. When everyone makes money, they will give it to everyone. If they lose money, they need to bear it themselves, just like giving their money to others for investment.
So the advantage of buying a fund is that we don't need to study what investment products are good and what investment products are not good, because these are all done for us by the fund manager. Of course, the premise is that the fund manager can be reliable.
Because fund companies must invest their money together, otherwise they will not generate income, so what they invest determines the type of fund. For example, bond funds invest in bonds, stock funds invest in stocks, and hybrid funds invest in bonds and stocks.
The reason why we should make clear the difference between different funds is mainly because the risks and returns of different funds are very different, and the high-risk returns may be high, while the low-risk returns are relatively low. After distinguishing the difference between the two, you won't buy funds that don't meet your expectations.
Secondly, it is to find a reliable or convenient purchase channel. There are still many channels to buy funds, such as Alipay and WeChat, or banks or securities companies.
As for where to buy, one is that it is more convenient to buy, and the other is that the cost is low. Because buying a fund requires a certain fee, and some platforms may have more fee concessions. Other things being equal, the lower the handling fee, the better.
Third, how to buy it. For beginners, when they start buying funds, they can start with low-risk funds, such as money funds and short-term debt funds.
Money fund is the lowest risk of all funds, and buying money fund will basically not lose money. The risk of short-term debt funds is slightly higher than that of money funds, but generally they will not lose money as long as they are held for more than half a year.
Buying these low-risk funds first can not only accumulate some fund investment experience, but also avoid the initial loss of buying funds and undermine your confidence in investing in funds. On the contrary, after making money through investment funds, you can learn more about the motivation of fund investment knowledge and skills. In addition, it is easier to lose money by buying those high-risk funds in the novice stage.
Of course, if you think these low-risk and low-yield funds are not enough, it is not impossible to buy those high-risk and high-yield funds. However, even if you want to buy it, it is best to take a fixed investment. Because buying funds by fixed investment is relatively simple to operate, and you don't need to master too much fund investment knowledge and skills, which is very suitable for novices.
Finally, it is the question of how to sell it. If you make a fund investment and want to cash in the income, you must sell it. For low-risk funds, you may see the benefits soon after buying and you can sell them at any time. Just holding it for a short time won't yield much, so if you don't need money urgently, it is better to hold it for a long time.
If you buy a high-risk fund, you may have to be prepared for a protracted war before you buy it, because you may not see the benefits soon after you buy it. For funds that do not make money, as long as the fund itself is not bad, there is no hurry to sell. For profitable funds, you can choose to sell them in batches.