As an ordinary individual investor, I believe that most people buy funds in this way. Through some software or other platforms, they see some funds, or the funds of people around them, and join the optional.
Then open the detailed introduction of the fund to see if you are familiar with the fund manager and how the performance of other funds is managed. What kind of fund is this? What is the historical performance? Does the investment direction have investment value?
If the overall feeling is not bad, we will consider choosing a time to buy this fund.
This process is not particularly problematic, but can be optimized.
In the structure of fund holders, we can see that there are two types, individual holders and institutional holders. What are the characteristics of these fund-holding institutions?
First of all, institutional investors can consider more fund indicators than ordinary investors when screening funds, and have more systematic, comprehensive and strict screening criteria to screen out a fund pool. Funds that are not in the pool will not be considered.
Institutional investors are different from individual investors in entering and leaving the market at will. The operation of institutional investors is more systematic and planned. Generally, they will not give a fund a qualitative judgment in a short time, but will give the fund a longer observation period.
Among the selected funds, overall, they are relatively stable and tend to invest steadily. In all kinds of asset allocation, the allocation ratio of bond funds and money funds is much higher than that of partial stock funds. Investment behavior is also more rational.
Since institutional investors are more professional and rational, can they buy funds with institutional investors? For example, choose a fund with a high proportion of institutional shares?
This way is not desirable. We can learn from the investment methods of institutional investors, but it is not suitable for copying homework. Institutions and individuals have different investment preferences. At the same time, funds with high institutional shareholding ratio are more risky for individual investors.