Life cycle fund is a kind of securities investment fund that constantly adjusts its portfolio according to the age of the target holder of the fund. Life cycle funds can be divided into target date funds and target risk funds.

The target risk fund and the target date fund have the same characteristics: providing diversified professional investment portfolios through a single and simple investment method to meet the needs of investors at different stages of their lives and achieve their goals.

Target risk fund: when it is established, different expected risks and income levels are set in advance, and the fund names are mostly named after growth, stability and conservatism. Growth funds has a high proportion of investment in high-risk assets; Conservative funds mainly invest in low-risk assets.

Investors can choose growth, steady or conservative fund investment according to their risk tolerance.

Target date fund: at first, the investment proportion of high-risk assets was high, but with the approach of target date, the proportion of low-risk assets gradually increased; After reaching the target date, they mainly invest in fixed-income assets, and often merge into money market funds after a period of existence.

How to choose a life cycle fund?

1. Check the target date of the fund.

Lifecycle funds generally have clear target dates, such as: 65438+February 3 1, 2020 or 65438+February 3 1, 2025. Under normal circumstances, the risk-return level of the fund will only be continuously adjusted before the target date; After the target date, the risk-return level is relatively fixed, and investors need to pay attention to whether the target date of the fund meets their own requirements.

2. Investigate the change rate of risk-return characteristics of funds.

The risk-return characteristics of each life-cycle fund change at different speeds. For example, Fund A invested 100% of its assets in stocks in the early stage, and evolved into a money market fund within 10 years; Only 60% of fund B's assets were invested in stocks in the early days, and it became a bond fund 20 years later. The change rate of risk-return characteristics of fund A is higher than that of fund B. ..

3. Examine the risk-return characteristics when buying funds.

When investors buy a life-cycle fund, the fund may have adjusted its asset allocation ratio because of its operation for a period of time, so it is necessary to examine whether the current risk-return characteristics of the fund meet their own requirements.

4. Inspection fund fee.

The level of handling fees is directly related to the final income level. Of course, if the difference is not big, it can be ignored.

The most comprehensive strategy to increase the loan amount to 50,000, pay attention to WeChat official account: financial tips, and you can get it by replying to the loan.