What are the risks for beginners to buy funds?
1 channel risk, novices need to open a website casually on regular brokerage transactions or high-quality third-party platforms, such as WeChat and Alipay, and they are likely to be cheated.
Buy new ones instead of old ones. Many people think that buying a fund should buy a new listing. In fact, this is wrong, because the new fund has no past performance as a reference, and it is impossible to judge the fund trend and obtain the investment strategy of the fund manager. Relatively speaking, the risk is greater.
3 buy low and don't buy high. I think funds with low net worth have lower costs and more room for growth. Actually, it's not. Funds with low net worth lack the power to rise, and funds with high net worth are also the continuous good performance of the fund.
Novices still have these risks when buying funds: 1, blind investment, no clear investment target; 2. Put the eggs in one basket, only invest in one fund, or buy too many funds, and there is no core portfolio; 3. Choosing a fund only pays attention to the rate of return, but ignores the equality of risk level, capital liquidity, handling fee and moisture; 4. There is no standard for take profit and stop loss; 5, the investment mentality is unstable, and you will panic if you lose a little.
There are many risks for novice investors to buy funds, but it will be safer if they can avoid these risks mentioned above. Learning the above principles of buying funds will help novice investors to understand the fund market faster and master some established rules of the fund market.