Fund portfolio investment can be simply understood as diversification, but diversification is skillful, and only reasonable allocation can achieve the purpose of diversifying risks and stabilizing expected returns.
How do novices invest in fund portfolios?
Method 1: Choose stock funds and fixed expected return funds, large-cap funds and small and medium-sized funds with different styles and different expected return characteristics. This method is very simple and rude, and it is also convenient for beginners to manage.
Method 2: Take bond funds, money funds and other low-risk products as the portfolio basis, accounting for more than 50% of the total investment, and allocate the rest to medium-risk funds and high-risk funds to obtain high expected returns, and the former is higher than the latter, so as to ensure that the medium-high-risk funds will not be greatly affected when they lose money. It should be noted that novice fund management ability is limited, and the total fund allocation should not be too much.
Mode 3: Choose a stable fund with relatively balanced risks and expected returns as the core fund, and allocate a few other funds with relatively high risks and expected returns.