? For any investor, making money is of course a very important goal. However, you must be self-aware that not all money can be earned.

People's wealth is limited and the market is ever-changing, so it is a great thing to get the money you can earn. So how do you know what kind of money is suitable for you to earn?

Regarding this issue, there is a professional term called user portrait.

However, the current profiling method is biased. A common approach for institutions is to understand the customer situation in a targeted manner and divide different dimensions for scoring, so as to anchor the relative position of the customer.

However, after in-depth analysis and practice, I personally believe that stereotyped user portraits are not suitable for guiding investment positioning, including the so-called user needs diagnosis, which cannot accurately understand the true needs of customers.

Because one set of problems cannot be suitable for all investors. If investors themselves don’t know what the situation is, why should institutions diagnose investors?

In order to avoid too bad deviations, the general user profiling method will focus on the two dimensions of risk tolerance and the investment period of funds, and use the test results as constraints on the investment plan, and then combine the income requirements to provide customers with appropriate investments.

plan.

Therefore, most customer profiles are analyzed based on risk appetite and liquidity perspectives.

There are actually loopholes in this process, because the market may not be able to provide investment solutions at all for the risk-return requirements of some customers.

However, there is no product on the market that can give the answer of "unable to provide a solution".

The final result is naturally "come with hope and leave with resentment."

Our next questions are all introspective in nature and need to be answered with conscience. You don’t have to tell me the answer, but you must remember the result, because this is the confidence for you to place your bet.

1. Am I suitable for fund investment?

What kind of people are suitable for fund investment?

Answer from two levels.

One is whether you think portfolio diversification is better than concentrated investment.

Portfolio investment is what we often hear about "don't put your eggs in one basket." The "eggs" are money, and the "basket" is the assets we are prepared to invest in.

If you think separation is appropriate, you should select "Combined."

If you have more money, you can build your own combination. If you have less money, you can buy the combination directly.

A fund is a portfolio.

The second is whether you think fund managers are better at building portfolios than you.

When the funds reach a certain amount, investors can make their own portfolio investments. At this time, the question you need to consider is whether your ability to build a portfolio is excellent.

If you are good at it, of course you can choose to do it yourself, but I'm afraid you don't have enough energy, so you need to choose to buy a fund, and the requirements for fund selection are also stricter.

However, for the average ordinary investor, they naturally do not have enough spare money to diversify their investments, nor do they have the energy to conduct professional analysis, so they naturally choose to let fund managers take care of it.

Generally speaking, the two types of people who are "very rich and wealthy" and "who are safe with a small amount of wealth" are most suitable for fund investment.

2. Do I understand the basic fund evaluation indicators?

To evaluate the quality of an investment strategy, at least two dimensions are needed: the rate of return dimension and the risk dimension.

(1) Yield Dimension: For products that have been running for less than one year, look at the cumulative yield, and for products that have been running for more than one year, look at the annualized yield.

The cumulative rate of return is how much money the product has earned from the beginning of investment to the present; the annualized rate of return is the income of the product converted into the income when the investment period is one year.

For example, from January 1, 2018 to July 26, 2019, the cumulative return rate of the CSI 100 Index was 1.43%, while the annualized return rate was 0.93%.

One thing to note is that the annualized rate of return of a fund that has been running for less than one year has no reference value.

For example: the return rate of a certain product in one day is 0.2%, then the direct annualized rate is 0.2% × 243 (trading days) = 48.6%.

There is a confusing assumption here, that is, you can earn 0.2% every day.

As the saying goes, it is easy to do the right thing, but it is difficult to do it right all the time.

The meaning of "annualization" here is to do it right all the time, which is actually difficult to do.

(2) Risk dimension Volatility is a common risk measurement indicator, which can anchor the approximate range of final returns based on average returns.