Other methods of capital combination, including industry proportion, average market value, number of shares held, turnover rate, etc. (1) Industry Proportion Morningstar divides stocks into three major industry categories: information industry, service industry and manufacturing industry. It can be subdivided into 12 subclasses. Generally speaking, the fluctuation trend of the same kind of stocks in the securities market is similar. If your fund portfolio is concentrated in the same industry, consider diversifying into funds that focus on other industries. Similarly, if you are in the high-tech industry? Being engaged in the industry means that your personal wealth is closely related to the high-tech industry, so you should no longer hold funds that focus on investing in high-tech industries.

Average Market Value The average market value is the geometric average of the market values of all the stocks in the fund portfolio, which reflects the market values of the stocks in the fund portfolio. Because large-cap, medium-cap and small-cap stocks have different performances in the market, investors can invest in funds with different market values to spread risks. From the perspective of risk diversification, the performance fluctuation of funds that invest only 20 stocks is quite different from that of funds that invest hundreds of stocks. Usually, funds with small shares fluctuate greatly. Therefore, investors should not only pay attention to the industry proportion of fund investment, but also know whether the fund will concentrate a large amount of assets on certain stocks.

The turnover rate is used to measure the frequency of fund portfolio changes and the average time for fund managers to hold a stock. Its calculation method is to divide the smaller of the total amount of securities investment bought and the total amount of securities sold in one year by the average monthly net assets of the fund. For example, a fund with a turnover rate of 100% usually holds shares for one year; A fund with a turnover rate of 25% is four years. Through the turnover rate, we can know whether the investment style of fund managers is held by buyers for a long time. Or take the initiative to buy and sell. Usually, funds with low turnover rate adopt low-risk investment strategy, while funds with high turnover rate are more radical and risky.