Before answering these two questions, I want to confirm a more important question: Are you suitable for investing in stock funds?
The most obvious feature of the stock base is that it fluctuates greatly!
We all know the high-risk and high-return characteristics of stock funds, but its high position is a double-edged sword!
Equity funds have relatively heavy positions. Except for the opening period, no matter how to lighten the position, the position of the stock should not be less than 80%, which means that the position of the bond and cash should not exceed 20%, which makes the stock fund occupy a unique advantage in the bull market. Because the fund has more chips and the market rises, the more money the fund makes.
On the other hand, if you want to lighten your position in a bear market, you can't reduce your stock position to 80%. When the stock market plummets, stock funds can only be anxious, and the stock price in their hands will not be sold if it falls.
So whether to invest in stock funds depends on your personal risk preference. If you are an aggressive investor and are willing to take greater risks, such as 20% fluctuation of your account, in order to obtain higher returns, then equity funds are a relatively matching investment choice.
Next answer: 1. How to choose? The problem of
How to choose an excellent stock fund? Share five screening criteria with you:
1. depending on the time when the fund was established, it requires at least 3 years, and there is not much information on the historical performance of the fund.
2. Look at the size of the fund. If the fund is too large, it will affect the improvement of income, while if the fund is too small, it may be liquidated.
Let's talk about the impact of too large a scale. In a sense, scale is the natural enemy of income, and the plate is too big to control. The focus of equity funds is to select good stocks. However, according to the regulations, the market value of listed companies held by the fund shall not exceed 10% of the fund's net asset value, which means that the fund manager should constantly look for a large number of good stocks to ensure the fund's income.
If the scale is too small, less than 50 million for a period of time, the fund will be liquidated.
In addition, there are other reasons to look at the size of the fund. In a sense, the size of the fund is the recognition of investors' performance. A small fund shows that there is something wrong with its performance and it is being abandoned by investors. So don't touch too small a fund.
3. Look at the performance of the fund.
It can be screened according to the online ranking of stock funds of Tian Tian Fund in recent 3 years, 2 years and 1 year, and the top 20 funds can be mainly seen. But please remember one thing: it is meaningful to compare the same type of funds, and there is no comparability between different types of funds, so you must choose the type first and then look at the ranking.
4. The risk control ability of the fund.
This step is the most important of all screening criteria. Many people will pay special attention to the historical performance of funds and choose those funds with excellent long-term performance. This is certainly true, but it is not comprehensive enough. As mentioned earlier, the biggest feature of stock funds is that they fluctuate greatly, rise sharply and fall sharply. Therefore, it is necessary to compare the fluctuations of different stock funds and choose a fund with relatively small fluctuations, that is, the withdrawal of the fund is well controlled, and it can fall less than similar funds when it falls.