First, you must understand your investment attributes and risk tolerance.

Funds do not guarantee absolute returns and involve certain risks.

Therefore, the most important thing is to understand the risk/return characteristics of each sub-fund of the umbrella fund according to your own financial management needs. You can focus on factors such as the total return rate of the fund and fund expenses.

Secondly, based on each fund management company’s background, investment philosophy, internal system, market image, historical performance of its funds, as well as the company’s employee quality, customer service, etc., comprehensively analyze and select a fund management company that is trustworthy and consistent with your own investment style.

company.

This is particularly important, because one of the advantages of umbrella funds is that it facilitates investors to switch between sub-funds. If the fund operator lacks good business quality, then there is no need to switch between sub-funds. Its advantages

Nature cannot be reflected.

Third, understand the investment styles of each sub-fund of the umbrella fund so that you can switch between sub-funds with different investment objectives based on market characteristics, risk preferences, asset conditions and other factors.

For example, when the stock market adjusts, you can turn to bond sub-funds with stable returns; when you have more funds, you can turn part of it to value-growth sub-funds to obtain more generous investment returns.

Finally, investors should be reminded that the differences in investment objectives and styles of each sub-fund of an umbrella fund provide investors with more investment options, and their advantages are based on a relatively developed capital market.

In the current situation where my country's financial products are relatively single, it is necessary to carefully identify the differences between sub-funds, which is also the key to choosing umbrella funds.