The number of funds selected should not be too much or too little. Too much money can't be managed, and too little can't achieve the purpose of decentralized allocation. In general, the number is 5? 7 is more appropriate, of course, you can also increase or decrease according to your own amount of funds.
2. The degree of correlation is very small.
The correlation between funds should be as small as possible. The rise and fall of one type of fund has nothing to do with the rise and fall of another type of fund, or it has little to do with it. The important thing is. The west is not bright, but the east is bright? Otherwise, there will be systemic risks, that is, one glory and one loss will make the total assets fluctuate too much.
3. Be in line with your own style.
The main purpose of financial management is to preserve and increase the value of one's assets and obtain an extra income in addition to income. The purpose of making big money is second. The important thing is that the principal is safe, and the income is stable and predictable, which is icing on the cake and a pleasant surprise. Therefore, we should choose products that conform to our own style. Those who like taking risks should allocate more risky assets, and those who are afraid of taking risks should allocate more conservative assets. If you can't sleep well because of financial management, it's not worth the candle.
4. Combine age characteristics.
Asset allocation should conform to its own style and consider its own age characteristics. The younger you are, the more you should allocate risky assets, such as stocks/gold/crude oil funds, and the older you are, the more you should allocate conservative assets, such as bonds/convertible bonds/ultra-short debt funds. Young people lose money and still have a long way to go. If the old man loses money, because the time is shorter, the chances of turning over are less.
The above is the relevant sharing about the principle of fund portfolio, hoping to help friends who want to know the content of financial management!