In fact, although the income of industry funds is good, the risk of fluctuation is also great. Industry theme funds are not suitable for most people, and funds with balanced styles are relatively better.
Because investment industry theme funds need to bear additional industry risks, old investors know that A shares fluctuate greatly. If you choose a theme fund in a sub-industry, you have to bear the extra risks of the industry itself besides the risk of switching hot spots too fast. This kind of industry risk sometimes shows ups and downs outside the broad-based index, and sometimes shows a great decline.
For example, when the medical industry encounters bad news such as volume collection, it will fall separately from the Shanghai and Shenzhen 300 Index. For another example, the index foundation of liquor industry is hit by strict control policy, and the market decline can be 50% within one year. For another example, the CSI Media Index may be in a downturn for five or six years due to the overall deterioration of the industry.
The balanced allocation of active funds in most industries generally allocates finance, medicine and consumption cycle. The time when the fund's net value bottomed out and peaked was basically the same as that of the Shanghai and Shenzhen 300 Index. Most of the balanced allocation funds are generally optimistic about the industry allocation of more than ten points, followed by the industry allocation of 5 to 10 points. If the industry in which funds are held is affected by the Black Swan incident, the allocated funds will also be dragged down and will not be dragged down.
Choose multi-industry funds, we don't have to be an industry, and we don't have to worry about the unique risks of the industry.