First of all, we should clearly understand our risk-return preference.
Knowing yourself is the first step in all investments. Including their own economic situation, job stability, income, large cash income that may occur in the next few years, expenditure, their age and health status. Only when you have a clear understanding and judgment of your current situation can you decide whether you have the ability to bear the risks that may occur in future investment. If we have good conditions in all aspects, the short-term sharp fluctuations in the market will not have a great impact on our personal life, so we can choose some investments with high risk and return; If our situation is just the opposite, we can consider investing in bonds, currencies and some conservatively allocated funds, and at the same time help some high-risk funds to improve their returns.
Second, it is a good method to invest regularly and regularly.
No one can guarantee that we can always buy at a low point and sell at a high point. Therefore, the fixed investment method is the most suitable investment method for ordinary investors. If we are optimistic about the long-term trend of the market, compulsory fixed investment can help us buy less fund shares at high points and more fund shares at low points. In this way, in the long run, our investment cost will tend to the average level of the market and get the average income of the long-term market rise.
Moreover, while adhering to the regular quota, it is best to make long-term investment. The fund's handling fee is not low, and the fluctuation is much smaller than that of stocks, so the short-term profit will not be very high. So I suggest a fixed investment of at least five years, of course, ten years is better. If it can reach twenty years, it will be excellent. The more you save, the more you will get in the end. It is best to invest idle money and ignore the existence of this money for the time being, and then take it out after ten or twenty years. The figures at that time must have been quite amazing.
Third, spread risks through portfolio investment.
We buy funds from leeks only in the hope of making profits and reducing risks, so it is best not to buy the same type of funds or funds with the same investment style repeatedly, so as not to achieve the purpose of diversifying risks. You can choose two or three products with different risks and returns for portfolio investment according to your actual situation, which means that you usually don't put all your eggs in one basket.
Fourth, master the types of funds and reduce the risk coefficient.
Different types of funds will present different income and risk levels due to different investment categories and scope. We need to choose the right fund type according to our risk tolerance and financial objectives. Well, the correlation shows the classification of seven kinds of funds-stock type, active allocation type, conservative allocation type, ordinary bond type, short-term fund and money market fund. Except for the capital preservation fund, the risks and returns of other fund types are decreasing. Due to its special mechanism, the principal will be guaranteed to be safe during the guarantee period. For gay friends with strong risk tolerance, stock funds and active allocation funds are suitable varieties; For investors with low risk tolerance, who only want to resist inflation, exceed the interest on time deposits and remain stable, they can choose conservative allocation funds and ordinary ones. The remaining short-term debt base and money market funds can be used as cash reservoirs because of their flexibility and convenience.