What fund to invest in and how to choose?
1) Select the appropriate fund varieties according to the fixed investment target and market conditions.
Not all fund investments can make money. In different market environments, different types of foundations play different roles. For example, the bull market should choose partial stock funds and index funds, so the probability of outperforming the index will be great. If you enter a bear market, bond funds, capital preservation funds and money funds should be good choices.
In addition, the fixed investment target is also an important reference. If your risk tolerance is low and your investment goal is only "anti-inflation", then investing in money funds is undoubtedly the best choice; If your goal is "children's education", and you expect to realize the steady appreciation of assets while pursuing higher expected annualized expected returns, then the types of funds suitable for you are bond type and capital preservation type.
Different from ordinary purchase funds (one-time purchase), the choice of fixed investment funds not only pays attention to the expected annualized expected return, but also pays attention to the stability of the fund state. Roughly according to the following standards:
A) Funds that have been established for a long time, preferably three years or more. It's not that new funds or funds that have been established for a short time are not suitable for fixed investment, but whether the status of these funds is stable. If you know enough about this fund, you can still vote for it
B) Can this fund guarantee a relatively stable ranking within three to five years? It is best to choose companies with high ranking and large fund management scale, because most of these companies can guarantee the stability of fund managers and their own investment level is in the forefront.
C) See if the fund manager is stable for many years.