There are no new lessons on weekends, so I focus on reviewing what I learned last week. I also listen to audio lessons repeatedly, take notes, and try my best to digest what the teacher said.

Last week, the teacher talked about hybrid funds and stock funds. Their income is higher than that of bond funds. If they choose well, their annual income can reach more than 10%.

If the income is high, the risk is definitely high. We novices are only suitable for small investments.

The teacher talked about three principles for choosing high-quality partial stock funds:

Principle 1, veteran fund managers are better than new fund managers. Senior fund managers have experienced several rounds of bull-bear conversion, and their ability to deal with special situations is stronger than that of new fund managers. They have seen all this knowledge, so there is a simple standard: senior fund managers are better than junior fund managers.

The second principle is that the historical performance of the fund is an important reference index. If a fund has been excellent or good in the long-term, medium-term or short-term, far exceeding the average income level of the same kind, then its performance trend is a good fund in the long run.

The third principle is to choose funds with a fund size of 2 billion to 4 billion. The scale is between 2 billion and 4 billion, preferably no more than 6 billion. The larger the fund scale, the more operational constraints on fund managers. Once the market changes, fund managers must make effective changes and adapt. Therefore, in order to better adapt to the changes in the market, it is best to choose a fund with a scale of 2 billion to 4 billion.

According to their different risk tolerance, the choice is different.

For example, conservative investors: mainly bond products with stable financial management or floating income, and a small number of index funds can also be allocated.

Steady investors: Partial stock funds can be used as a part of your overall wealth management income, occupying a certain proportion, and choose hybrid funds or index funds.

If you plan to buy a lot at once, then allocate equity funds in the bull market and make a wave of money while taking advantage of the bull market. In a volatile market, it is suitable to allocate hybrid funds, which is flexible and suitable for fund managers to deal with ups and downs.

If it is a fixed investment, it is best to choose an index fund, which is relatively stable.

No matter what kind of fund you invest in, the key is to learn to screen and see if it is a high-quality fund. Of course, the choice always depends on the manager's historical performance, the manager's working years and the fund size.

Have you learned how to screen high-quality funds?