What is a conservative allocation fund?
Conservatively allocated funds refer to funds that invest in stocks, bonds and money market instruments and do not meet the classification standards of stock funds and bond funds; And the proportion of fixed income assets to net assets is greater than or equal to 50%. Conservatively allocated funds are favored by investors because of their flexibility. In the case of 20 15 stock market crash, the conservative allocation fund can still resist the general decline.
What are the functions and advantages of conservatively allocated funds?
The advantage is that investment funds can make full use of the professional advantages of fund managers and allocate large-scale assets such as stocks and bonds. When there are investment opportunities in the stock market, the proportion of stock investment will expand and the return of the stock market will be greater. When there are investment opportunities in the bond market, the proportion of bond investment will be increased to obtain greater returns in the bond market. Generally speaking, through the choice of fund managers, the investment income of the securities market is largely obtained and the risks are controlled.
Secondly, the conservative allocation of funds has several advantages:
1, conservative funds become a safe haven. Since 20 13, the A-share market has turned from strong to weak. The fund market also highlights its high-risk side. The yield of the main types of funds fluctuates greatly, and the type of funds with large risk assets allocation but relatively stable or even conservative has the smallest loss, which has obvious advantages compared with other partial stock funds.
2. Conservatively allocated funds resist falling. In recent years, the fluctuation of the stock market has brought great uncertainty to the investment performance of funds, and also brought high risks to fund holders. Although the overall net value of the fund fluctuates slightly relative to the market, the quarterly performance of the average net value of partial stock funds is highly correlated with the yield of the Shanghai Composite Index.
The significance, benefits and advantages of conservative allocation funds are here for investors. When investing in funds, funds with high risk awareness and high risk control level in historical performance deserve investors' attention. Some funds explicitly limit and avoid taking investment risks in their investment strategies.