Among the open-end funds, people are most concerned about stock funds and partial stock funds, because they may generate huge profits. However, this is also the most complicated fund, because each fund has different investment direction and different performance.

The concept of stock fund

The so-called stock fund refers to a fund that invests more than 60% of its assets in stocks. There are three main types of funds in China: stock funds, bond funds and money market funds. Judging from the risk coefficient, equity funds are much higher than the other two funds.

So, what are the suitable people for stock funds?

Equity funds are suitable for people.

How high the risk is acceptable, whether it is a long-term investment or a short-term investment, and whether it is possible to use this part of funds at any time are the first issues that the basic people need to consider before choosing a stock fund. In short, it is to determine your own investment philosophy, "There is no best fund, only the most suitable fund products".

In the medium and long term, China's economy is in a trend of sustained and steady growth, so the industry is optimistic about the medium and long-term trend of the A-share market. If you agree with this view, at the same time, you can take certain investment risks and aim at medium and long-term investment returns, you can consider choosing to buy or continue to hold equity funds.

Investment strategy of stock fund

Selection strategy

Don't rely too much on the ranking of equity funds.

Investors should not rely too much on the ranking data of equity funds. Ranking is based on the past performance of funds, and it cannot accurately predict the future trend, especially for stock funds, which is difficult to operate. The ranking data can only be used as a reference.

When choosing stock funds, we should pay attention to whether the net value of the fund grows steadily, and at the same time pay attention to whether its equity structure has the potential to rise.

Hold a state of mind

Can you avoid net value fluctuations in the short to medium term?

Stock funds are different from stocks. Sometimes, although they lag behind the market in the short-term market, their long-term performance is promising. At this time, investors should not make frequent adjustments to avoid rising transaction costs and falling behind the broader market. However, many investors don't have this psychological endurance, and they can't help but be scared when they watch the net value fluctuate. This mentality is not desirable.

Flexible response

How to deal with the high diving of the stock market

How to deal with the situation that the stock market has undergone major adjustments and the net value of equity funds has been shrinking? Bian Xiao teaches you two tricks to avoid risks: first, redeem part of the income and put it in the bag. The second is to sell the old fund to lock in the income and buy the new issue fund at the same time.

In addition, it is suggested that stock funds and money funds should buy the varieties of the same fund company, so that when selling stock funds, they can be directly converted into money funds, which can reduce costs and improve investment returns.