I. Classification of funds
Funds are mainly divided into four types: money funds, bond funds, stock funds and hybrid funds. For some white people who don't understand the market, if they want to make money, they can give priority to money funds and bond funds, mainly bank deposits, short-term bonds and capital preservation products. Bond funds are more suitable for people who can accept losses below 20%. The main difference between two funds with the same name is the last letter of A and C. The fund ending in A is suitable for investment for more than one year, and the fund ending in C is a short-term fund. These two types of funds mainly lie in the different charging modes.
Second, how to choose a fund
When choosing a fund, we should pay attention to the historical nature of the fund from the beginning and whether the manager of the fund has a high return on investment. Also pay attention to a key indicator, that is, the maximum withdrawal rate. The maximum withdrawal rate is the rate of return when the product is withdrawn at any time in the selected period and the lowest point is prohibited. The maximum withdrawal rate is simply the biggest decline of the fund in the past period of time.
Three. Matters needing attention in fund trading
Buying and selling funds should pay attention to buying low and selling high. If the valuation falls that day, it is more suitable to add positions to buy, because low stock value means cheap, and if it is cheap, buy more, and the income will be higher in the long run. Alas, many friends like to buy many funds in order to spread the risk of funds. In fact, this is not conducive to investment. Just buy 3-5 funds normally.