First, the concept of value fund
The basic goal of value fund is to have stable recurring income. Its investment object is mainly determined by the stable income of the object, including corporate bonds and national debt, which are relatively stable income in terms of income. Value fund is a kind of investment portfolio, which mainly focuses on value-added stocks. And in the actual operation of the fund, it pays more attention to controlling risks than other funds and strives to realize the stable appreciation of assets. Therefore, it can be said that when the value fund is just bought, the fund price will be lower than the intrinsic value. However, it is expected that the fund price will return to the original reasonable level. The investment risk of value funds is low, and the companies selected by such funds are relatively mature and stable in some business models. Moreover, the fluctuation of cash flow is small and the dividend rate is high.
Second, there are many reasons to be optimistic about value funds.
Value funds can be optimistic, which has a lot to do with the low profitability of the value fund market. The value fund has small fluctuation and strong resilience. Under normal circumstances, when the fund market falls, value funds can play a role in stabilizing the market. The investment field of value funds is mainly concentrated in traditional industries, which requires investors not to be quick and quick, and stability is the most important. Observing the past trend of value funds, it is easy to find that the trend of value funds is steady and upward. Although the increase of funds is different at different time points, the upward trend is still obvious. From the perspective of long-term development, personally, value funds have great investment value and are suitable for long-term holding.
Three. Criteria for selecting funds
Faced with so many types of funds in the market, first of all, when the fund is established, priority should be given to those that have been established for a long time. Personally, it is best to set up the fund for more than 5 years. The second is to choose a fund with large investment scale, and then the fund manager. It is best to choose someone who has worked for more than 5 years. Working for more than 5 years, you must have rich practical experience and have experienced bull market and bear market. You can check his historical performance and awards in the market. Finally, it depends on the investment style of the fund manager, which has a key impact on the performance of the fund to some extent. These are all important indicators that I think should be considered when choosing a fund. Investors should choose the matching fund according to their own actual situation.
In my opinion, the value fund can be valued mainly because of its stability and relatively small risk, which is very suitable for conservative investors like me.