Fund, broadly speaking, refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations. Today, Bian Xiao will share with you what kind of fund is more suitable for beginners, for your reference only!

What kind of fund is more suitable for beginners?

For novice investors, the suitable fund type is index fund. The following are some characteristics of investment funds suitable for beginners:

Low risk: index funds are usually tracked by benchmark indexes, and their risk is lower than that of actively managed funds. For novice investors, reducing risks is more important.

Easy to understand: the investment strategy of index funds is relatively simple and clear, and the performance of funds is directly related to the tracked indexes. This makes it easier for novice investors to understand how the fund works.

Diversified investment: index funds usually invest in multiple stocks or bonds, thus realizing diversified investment of funds. This helps to reduce risk, because investors will not put all their eggs in one basket.

What are the skills of fund operation?

Asset allocation: according to the individual's risk tolerance and investment objectives, rationally allocate assets. For example, according to the long-term goal, we can consider diversifying investment between stock funds and bond funds.

Regular fixed investment: Don't try to operate opportunities through short-term market fluctuations, but adopt the strategy of regular fixed investment, buy funds regularly every month or quarter, and reduce risks by averaging the cost per share.

Pay attention to the cost: choose a fund with a low rate, because the rate has a great impact on the long-term return. Compare the expense rates of different funds and choose the appropriate fund.

Keep a long-term perspective: fund investment is a long-term process, and short-term market fluctuations are normal. Be patient and have a long-term perspective on fund investment.

Continuous learning: Investment is a process of continuous learning and progress. We will continue to learn investment knowledge and understand the investment strategy and market dynamics of the fund.

Buying strategy of novice buying fund

Simply put, buying a fund can be a one-time purchase or a fixed investment of the fund. Personally, the former is mainly suitable for stable fund performance, steady rise, or good market. At this time, you can buy at a lower point at one time to obtain higher returns; The latter is mainly suitable for funds with high volatility, or when the market cannot be grasped, because it is difficult for most people to judge the high and low points of the market, so the method of fixed investment can avoid the embarrassment of buying at high points, buy less shares at high points and buy less shares at low points, and realize low cost allocation.

What should I pay attention to when buying a fund?

1, buy new but not old

For many fund novices, they always like to buy new funds, thinking that the new fund rate is relatively low, which can reduce costs and has development potential. I thought so at that time, so I bought some new funds, but I didn't make any money for more than a year. The new fund has no past performance as a reference, so it is impossible to judge the trend of the fund and obtain the investment strategy of the fund manager. Moreover, most new funds are controlled by new fund managers, so it is impossible to judge the investment ability of fund managers, and their investment strategies have not been tested by the market.

2. Buy low and don't buy high

Buying low and not buying high can be said to be a misunderstanding that most fund newcomers will walk into. They often think that the fund's net worth is low, the purchase cost is low, the fund's net worth is already very low, and they will not continue to go down, and they are likely to bargain-hunting and gain greater benefits. I don't know how many people went down the mountain, but they copied it halfway up the mountain! For high net worth funds, most novices will be intimidated by high net worth, which is also a manifestation of the fund's sustained good performance!

3. Buy short but not long

Many people buy funds like stocks, but they don't know that funds usually need to be held for a long time to see the benefits. Of course, they must learn to stop losses under special circumstances. Of course, in most cases, it is still held for a long time. Frequent buying of funds for short-term operation not only wastes transaction costs, but also may miss many skyrocketing markets.

Preliminary selection method of funds

1, the theme selects "Basic" method.

As the name implies, according to the division of fund themes, choose the fund themes you want to invest in among your favorite themes, such as banking, securities, insurance, food and beverage, coal, steel, new energy vehicles and so on. Of course, these themes don't need to be sorted out by ourselves, and the professional fund sales platform has been sorted out for us. We just need to click and select the fund.

2. Select "Foundation" according to the fund type.

As we all know, according to the different investment objects of funds, funds can be divided into stock type, hybrid type, bond type, currency type and so on, and the corresponding risk degree of each fund type is also different. For example, more than 60% of equity funds invest in stocks, so the risk is also the biggest, which is suitable for radical investors to invest. So we can choose the type of fund we want to invest in according to our risk preference.

3. Select "Base" according to the index.

As we all know, the China mainland stock exchanges are mainly Shenzhen Stock Exchange and Shanghai Stock Exchange, and the stock index is an important tool to judge the market trend.

China's mainland stock indexes mainly include Shanghai Stock Exchange Index, Shenzhen Stock Exchange Index, Shanghai and Shenzhen 300 Index, Small and Medium Board Index, Shanghai Stock Exchange Index 50, Shanghai Stock Exchange Index 500, Growth Enterprise Market Index, etc., so we can also choose funds according to these indexes, such as Shanghai Stock Exchange Index Fund, Shanghai Composite Index Fund and Growth Enterprise Market Index Fund. Generally speaking, the trend of index funds is relatively close to the index. On the whole, the level of China stock index is still relatively low, and it has a bright future.