If an investment fund wants to earn a lot, the first thing to do is to choose the right fund. So, how should we choose a fund? Many citizens like to chase hot investments, such as investing in any hot industry. Is this really reliable? Today, Bian Xiao will share with you whether it is reliable to buy funds with market hotspots for your reference only!

In fact, the stock market is changing rapidly, and it is normal for fund performance to fluctuate, so when choosing a fund, the observation period should be relatively long.

Deciding to buy or sell only by short-term performance or short-term hot spots is very easy to chase up and down, and it will also pay a lot of subscription and redemption fees because of day trading, which will increase transaction costs and lead to unsatisfactory final investment income.

The increase of hot spots can bring benefits, but not by "chasing", but by seizing opportunities. If you don't explore investment opportunities through professional analysis and research, you just rush in when you see the heat, and it often gets cold when you touch it.

Do you need to chase hot spots or hot spots when buying funds?

First of all, for the hot plate, there are industry index funds and industry theme funds in Public Offering of Fund. You can indirectly invest in the hot plate through Public Offering of Fund.

So do you need to chase hot spots or hot spots when buying funds? Yes, but not recommended.

Funds don't have the best investments, only the most suitable ones. If you are a master of short-term operation and have a deep understanding of the cycle of an industry, of course, you can choose the opportunity through index funds with high selling and low sucking.

But most investors are not professional, what's more, professional investors, such as fund managers, rarely make excess returns by timing.

Investment funds are "unprofessional" in nature, so we should look for "professional people or institutions". More generally speaking, people who buy funds are not as good as fund managers.

Fund investment and stock investment are actually two concepts. Through index funds, industry timing is more like the investment idea of stocks. And most of us don't have this ability. Therefore, it is still honest to buy a fund, or choose a broad-based index to vote, or choose an excellent fund manager to hold it for a long time.

Can you make money by buying a fund with a hot market?

What are the hot spots in the market? Many media are scrambling to report hot spots, and many top-ranked funds are hot spots. Obviously, when we are chasing hot spots, hot funds and hot fund managers, we are also losing money.

Just like the skyrocketing technology before, the soaring liquor is a hot sector, driven by performance. Good returns, investors continue to overweight, resulting in the amount of funds pushed up and continued to rise. Over and over again, it seems that no one feels that he is the last recipient.

But looking back at the skyrocketing technology, it is still in a downturn, but how many investors can make money at a high point and leave? How many investors are caught in the strange circle of falling, buying and losing? Therefore, chasing hot spots may have short-term profiteering, but the risks are also great, and it is difficult for ordinary investors to make money all the time.

Becoming a qualified citizen is actually quite difficult; If you can become a citizen who keeps making money, then you are Daniel.

Correct investment concept. Investment is not speculation. Don't dream of "making quick money". You may make a small achievement for a while, but you won't get sustained long-term investment in the long run.

There are good and bad funds. Choose the right fund according to your risk tolerance.

Diversified investment, the more money you don't invest, the better. In terms of fund types and investments in different markets.

How to invest in theme funds correctly?

Because the investment direction of theme funds in various industries is relatively concentrated, once they set foot in the right place, the corresponding industry theme funds can show strong explosive power in a short time and obtain higher excess returns, such as chips, medicine and consumption in the first half of the year. At the same time, however, the selection of theme funds is difficult, the cycle fluctuates greatly, and the investment ability is required. So how to invest in the fund correctly?

1, select a theme.

The primary task of choosing a theme fund is to evaluate the investment theme itself. First of all, the selected sectors or themes should have long-term investment logic and growth. A good theme fund should have reasonable investment logic, growth and solid performance support, not just short-term hot spots.

Secondly, the strategy of theme funds should be flexible, because market hotspots and economic development trends are actually dynamic, and the development of the industry itself needs to be upgraded and adjusted. If the topic is too narrow, it may be passive.

2. Choose admission opportunities

Investors should also consider the heat of the theme and the timing of allocation. How long is this theme trend expected to last? How long is your investment period? Investors can set some indicative indicators, including valuation, to judge the timing of buying and selling, and closely follow these indicators.

In addition, investors who buy theme funds should also ensure that they have really understood the risk-return characteristics of the products they invest in. For example, while seeing the growth opportunities of the industrial chain, we should also fully understand the regulatory risks of related companies. Only when investors fully understand the risk points and main growth drivers behind a theme can they make a rational judgment on whether to include it in the portfolio.

Step 3 choose a fund

After choosing the theme, we have to choose which fund to manage actively or passively.

The advantages of active management of theme funds lie in more flexible investment strategies and stock selection, and the professional advantages and obvious investment style of fund managers in exploring early investment opportunities.

The advantage of passive theme index funds is that their positions are relatively stable and transparent, which is conducive to investors' tracking, and the corresponding ETF is also a better choice.

Finally, when investing in theme funds with various categories and high market enthusiasm, investors should calm down and analyze and understand the risk-return characteristics of such products.

Because of its high risk and narrow investment scope, investors should consider theme funds from the perspective of satellite configuration rather than as core positions when constructing their own fund portfolios. From the perspective of portfolio diversity, if the risk-return characteristics of a theme fund and other funds in the portfolio can complement each other, it also has good allocation value.

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