First, for non-professional investors, I tend to advise him/her to invest mainly in funds, supplemented by direct investment by himself/herself.
The reasons are as follows: Why did you become a fund investor?
Funds are efficient investment tools. With funds, investors can maximize their investment territory, spread their funds to more strategies and share the abilities of the most professional investment managers in various fields.
Investors themselves can do better than any professional investment manager in a certain segment, but they can't do their best in all segments.
In addition, there is the logic of "comparative advantage", so our suggestion is to invest in areas that are proficient and entrust other areas.
When you master the method of distinguishing ability from luck, pay 1% management fee and share the ability of professional investment managers, it will be very cost-effective.
Second, according to your own time and preferences.
1. spare money, if you have spare time: invest in the stock market, enter the market at a low level, and you should feel a little after a few hits, and gradually realize profitability. Once you start to make a profit, the expected annualized expected return is much higher than that of the fund.
2. If you have spare money, you don't have much spare money: If you study several funds carefully, the radical style means that the expected annualized expected return is high and the risk is high, while the conservative style often means that the expected annualized expected return is low and the risk is not small, because the resources of good managers are basically on the side of the expected annualized expected return, while people on the conservative style side are basically timid. Select a few funds with radical style and good performance and hold them appropriately.
3. Have spare money and no time to study: buy trust products or wealth management products, or simply buy bonds. Blindly buying funds loses less than blindly buying stocks.
Our conclusion is that the expected annualized return of stocks is high, but the risk is also high. For risk-averse people, investing in stocks is a good choice, but for risk-averse people, learning to invest in foundations gives them one more choice in financial management and one more chance to make money.
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