Bear market must be the last thing domestic securities investors want to hear. Talking about the color change of bears has almost penetrated the instinct of every investor. In fact, when we look away from the stock market in the bear market, we will find that many funds are good financial choices at this time.

What fund does a bear market buy?

Bear markets usually choose funds that invest in short selling or derivatives, and these funds expect to profit from falling stock prices. Because of its large number of short selling or holding put options, the rate of return is usually opposite to the trend of the benchmark index. Short selling is not allowed in China, and qualified investors can purchase overseas short selling funds through domestic foreign banks or Hongkong banks.

The domestic short-selling derivatives are mainly stock index options, which are less selective. Trying to profit from these two funds when the market is bleak is a very dangerous game and should be avoided as much as possible.

Ordinary individual investors don't need such bear market funds, even for hedging. For most people, the best way to hedge risks can be traditional portfolio construction means-such as increasing bonds and reducing the proportion of equity.