Many of our wealth management products are linked to the stock market, and the expected income will be affected by the stock market. Then the stock market volatility intensifies, what impact does it have on the fund? How should our investment respond? For this problem, Bian Xiao prepared the knowledge about the influence of stock market fluctuation on the fund for reference.

What impact does stock market fluctuation have on the fund?

Increased stock market volatility will definitely affect the fund. Generally speaking, the relationship between the stock market and funds is a positive change. When the stock market is in a bear market and most stocks fall, then most funds will also fall. When the stock market is in a bull market and most stocks are rising, then most funds will also rise.

Although in general, the change of funds is positively related to the stock market, some funds have little reaction to the shock of the stock market, or some funds are not affected by the stock market, or even have a reverse relationship.

According to different investment targets, funds can be divided into money funds, bond funds, hybrid funds and stock funds. Among them, hybrid funds and equity funds are most affected by the stock market, which is basically consistent with the changes in the stock market. This is mainly because the main investment targets of hybrid funds and equity funds are stocks, and both funds are basically a combination of a basket of stocks. When the stock falls, the net value of the fund will also fall.

Money funds and bond funds are basically unaffected by the stock market, and bond funds may even change in the opposite direction to the stock market. Money funds and bond funds are not affected by the stock market mainly because money funds mainly invest in the money market, while bond funds mainly invest in the bond market.

Why is it possible for bond funds to move in the opposite direction to the stock market? It is because when the stock market is in a bear market, people are reluctant to put money into the stock market, and the return on stock investment is not high. Instead, they will put more money into the bond market and push up the bond price, so that the net value of bond funds will also rise.

How should our investment respond?

In the face of increasing stock market volatility, we should mainly prepare for the following two points.

The first thing is to be prepared for long-term investment, although in a short period of time, the stock market is affected by many factors, and the stock market volatility is intensified. But in the long run, with the strengthening of loose monetary policy and the gradual promotion of "steady growth" policy, it is very likely that the stock market will rise after a period of time.

Secondly, we should adjust our investment portfolio. Under the background of increasing stock market volatility, we should reduce the proportion of high-risk investments and enhance our ability to resist risks. Try to give priority to prudent financial management, reduce capital losses and improve the expected rate of return.

Why are you afraid to buy it?

The recent performance of the broader market is worrying, and the Shanghai Composite Index fell below 3,300 points; Growth enterprise market index hit a nearly one-year low. Most citizens feel discouraged. According to our many observations, many citizens are afraid to buy funds now, often for the following reasons:

1, the market is not good, I don't know what fund to buy?

I don't know if the market has bottomed out. Can you make up for it at this time?

3. Friends around me are exposed to "negative income" in the circle of friends, and they are under great psychological pressure?

In fact, to sum up, it is a word "fear"-fear of loss (what if you don't make money in front and continue to lose money in the back? In fact, this part of the basic people did not look at the plunge dialectically. In fact, it may be a better buying opportunity, and they did not see the investment value of the fund from a long-term perspective.

02. How to solve the mystery in my heart?

People's emotions often affect the development of the market, and some irrational emotions may appear in short-term fluctuations, thus accelerating the rise or fall of the evolving market. But we must always remember that the market will eventually return to rationality. Short-term market fluctuation will not affect the long-term value of equity investment.