Balanced funds can be roughly divided into two types: one is a balanced fund of stocks and bonds, that is, the fund manager will adjust the allocation ratio of stocks and bonds in time according to market changes. When the fund manager is optimistic about the stock market, he will increase the position of the stock, and when he thinks that the stock market may be adjusted, he will increase the allocation of bonds accordingly. Another kind of balanced fund, while balancing stocks and debts, emphasizes dividends and pays more attention to the safety of bags, which is also one of the ways to avoid risks. Determine the proportion of securities in a balanced arrangement in advance, usually maintaining 50% common stock, 50% bonds and preferred shares. Its main investment purpose is to obtain debt interest and dividends from fixed-income securities such as bonds and preferred stocks, and at the same time gain capital appreciation of common stocks. Therefore, it is welcomed by investors who pursue asset appreciation and stable income.
The average rate of return of balanced funds in A-share market is not lower than that of equity funds, and even higher than that of equity funds. In addition, several market adjustments in the A-share market show that the fluctuation of balanced funds is less than that of equity funds. Judging from the long-term overseas market performance, Morningstar statistics show that among all kinds of Asian mutual funds, the total return of balanced funds in the past 10 years far exceeded other types of funds, including equity funds, which proves the stable investment ability of balanced funds in volatile markets. Therefore, for investors with low risk tolerance, balanced funds can be regarded as the key fund varieties in the volatile market.
Points for attention in balancing funds
Fully understand the risks of fund investment. All investment tools are bound to be accompanied by certain risks, which investors must realize. Therefore, before investing, you should do a lot of homework to understand the characteristics and types of fund products and the soft knowledge of the selected fund companies and fund managers. Only in this way can we better control risks.
Funds are more suitable for long-term investment. Friends who have invested in funds know that most funds are suitable for long-term operation. Frequent redemption will only increase the burden of related expenses, and the predictability of short-term operations is too low, and some rely on luck. However, long-term investment has more historical data to refer to and is more predictable.
Know your risk tolerance. No matter what kind of investment you make, you must know your risk tolerance and do what you can. In fact, different age groups, different occupations, different cycles and different investment objectives are all important factors that affect investors' risk tolerance, so we must objectively evaluate our risk preferences. Don't blindly follow the trend.