Fund is a collective investment product, with * * * income and * * risk. Although the risks of different fund types are different, funds are all products with floating expected returns, and the expected returns are uncertain, so there is the risk of principal loss. So what if the fund keeps falling? The following is the information collected by Bian Xiao about 202 1 What if the fund keeps falling _ What are the advantages of the broad-based index fund? I hope I can help you.
202 1 What if the fund keeps falling?
1 IMF. Money funds invest in money market instruments. Although market interest rates and other factors will affect money market instruments, the expected income of money funds is relatively stable as a whole, and the probability of losses is extremely small. If the money fund continues to fall, then we should be careful whether the fund has the risk of liquidation, and suggest redeeming the fund in time.
2 bond funds. The risk of bond funds is slightly higher than that of money funds. The investment target is mainly bonds, and some assets will invest in equity assets such as stocks. Therefore, although the risk of bond funds is small, it is not a steady profit. Generally, when the stock market is strong, the bond market is often weak, and funds will flow from the bond market into the stock market with higher expected returns, resulting in a decline in bond prices and expected returns of bond funds. If it is due to the continuous decline caused by market conditions, investors can decide to make up the position at a low level or stop loss according to their personal judgment.
3. Equity funds or hybrid funds. Equity funds or hybrid funds belong to equity funds, and their net value fluctuates greatly. If the net value of the fund continues to decline, investors need to focus on the fund size, position grabbing, past performance and past performance of the fund manager. If the size of the fund continues to shrink, we should be alert to the risk of liquidation. Generally, if the fund size is less than 654.38 billion, there is a risk of liquidation. If there is no problem with the fund size, position and past performance, we can make a horizontal comparison with similar funds to determine whether it is the market environment.
What are the advantages of broad-based index funds?
The advantages of 1 broad-base index fund include low cost, high investment efficiency, keeping up with market trends, and responding faster than other funds when the market rises strongly.
Small error is also one of its advantages. The investment goal of index funds is to completely copy the index and obtain the same investment income as the index. Therefore, the tracking error rate is low, indicating that the fund operation level is high and the error risk is small.
The biggest advantage of broad-based index funds is that they cover more and wider industries, are evenly distributed and have more stable returns. Moreover, broad-based index funds are suitable for most investors.
Generally speaking, broad-based index funds have the advantages of low cost, high efficiency, small error and wide coverage. In the stock market, the reason for losses in most cases is that investors are too emotional. In order to reduce losses, it is safer to choose broad-based index funds. It should be noted that in the case of weak market, the risk of generalized index funds will be higher and will drop sharply with the stock market decline.
How to buy broad-based index funds?
1 Choose and determine the reliable fund company you want to invest in. The company size is an important measure. At present, fund companies with domestic funds exceeding10 billion should not be underestimated.
From the perspective of short-term investment, the timing of buying broad index funds mainly depends on investors' judgment on short-term market trends and styles.
If it is a long-term investment, investors need to pay more attention to the release or low systemic risk, and the stock market should be in a non-bubble stage.
4 The lower the tracking error rate, the better. The bigger the fund, the better. Meanwhile, the lower the cost, the better. Among them, the tracking error rate is low, indicating that the fund has a high level of operation and a small risk of error.
The advantages of broad index funds are mainly reflected in the wide dispersion range and the lowest combination adjustment cost and transaction cost. When the market is improving, the broad index fund can be used as the core allocation of long-term portfolio. The investment of broad index funds can be divided into long-term and short-term, and investors need to choose according to their actual situation.