How to reduce the investment risk of the fund?
1 Fixed investment: Fixed investment is the best way to spread investment risks and reduce investment costs. If the risk and cost of the fund are reduced, the probability that the fund can make a profit will naturally increase. The fixed investment of the fund is commonly known as "lazy investment". The simple understanding of the fund's fixed investment is that investors automatically buy after setting a buying time and amount. There are generally three choices: daily fixed investment, monthly fixed investment and weekly fixed investment.
2 Diversified investment: Funds can buy more than two funds when investing, preferably different types of funds in different industries. Reasonable fund allocation can effectively spread investment risks, so that when one fund loses money, other funds may make profits, which can hedge risks.
3. Buy in batches: It is recommended to buy in batches when investing in this fund, not at one time. Buying a fund at one time is risky. Once the fund loses money, it may not be able to cover the position. Buying funds in bulk can well diversify investment risks and reduce investment costs, which is similar to the fixed investment of funds, but it requires investors to pay attention to the fund market at all times, rather than the fixed investment of funds.
Generally speaking, fund investment still needs to pay attention to certain skills. Although the risk of funds is not as high as that of stocks, if you invest a lot of money, which belongs to stock funds and other types of funds, once the net value of funds falls a lot, the losses will be very large.