It is said that investment requires risk diversification. You cannot put eggs in one basket. However, it is very tiring to put them in multiple baskets when there are not many eggs. A person's energy is limited. Buying 40 funds with 1 million is indeed too much.

, it is best to control this amount within 5 funds!

How to choose a fund?

Fund selection is not just about buying whichever one your friends say is profitable, or buying it on the Alipay recommendation page. If you want to buy a fund and make money, follow these steps. You will not lose money.

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1 Look at the fund manager. Buying a fund is actually choosing a fund manager. You can look at the following aspects, such as the fund manager’s resume, years of experience, the fund manager’s best experience of a round of bull-bear transitions, and the fund manager’s recent rate of return.

Look at it every year or three, the higher the return, the better!

Finally, look at the fund manager's positions to see if the fund manager's positions are to your liking.

Second, the maximum drawdown rate of a fund. Each fund manager has his or her own different investment styles. Some fund managers prefer a conservative style, while some fund managers prefer a radical style. The maximum drawdown of a fund refers to the maximum drawdown of the fund that you can withstand.

, I personally accept a retracement rate of 30%.

Third, maintain a good personal mentality. Fund investment has certain fluctuations. Many people cannot control their mentality when buying funds. They like to chase the rise and fall or buy funds like short-term stock trading. This is the most taboo in fund investment.

Yes, when you choose a fund, you must believe in the ability of the fund manager and hold it for a long time, and then choose to sell it when the income reaches your ideal state.

To sum up: Fund investment cannot put all eggs in one basket, but it cannot be too scattered. After all, personal energy is limited. It is best to control one million funds to about 5 funds. If you have 1 million in your hand, you

How many funds will you buy?

I wonder if you have an idea when it comes to investing, to package up all the powerful fund managers.

Buy twenty funds with 20,000 yuan, and invest 1,000 yuan in each fund.

Zhang Kun, Liu Yanchun, Zhu Shaoxing, Qu Yang, Ge Lan, Yuan Fang, Wang Chong, Xie Zhiyu, Dong Chengfei and so on.

Let them work for me, it's a pleasure.

In fact, there are many friends who invest and open fund supermarkets.

On the one hand, they have difficulty in choosing, allowing them to choose just a few among dozens of excellent funds.

Too difficult.

Buying it all solves this problem perfectly and spreads the risk.

On the other hand, I am afraid that the rising sectors will not be affected by it, including consumer, pharmaceutical, military, and semiconductor sectors.

It’s smaller, the layout is smaller.

Don't put your eggs in one basket.

The more funds there are, the more diversified the risks really are?

Let’s take a look at the top ten holdings of Zhang Kun’s E Fund small and medium-cap, Liu Yanchun’s Invesco Great Wall Dingyi and Qu Yang’s Qianhai Kaiyuan China Scarce Assets Fund.

Their net worth trends in the past three years cannot be said to be exactly the same, but they are also very similar.

The reason behind this is that their investments are concentrated in the consumer and pharmaceutical sectors.

You put your eggs in different baskets, but the baskets are placed on the table of consumer and pharmaceutical sectors.

The table collapsed.

The fund itself is a collection of stocks, and the fund manager itself is diversified.

Buying multiple funds with the same investment style cannot diversify risks.

Another problem with holding too many funds is that it consumes too much energy.

When there is a big rise or fall, you will feel overwhelmed if you reduce or increase your position. You will be thinking about Kunkun, Chunchun and Lanlan all day long, so how can you still be in the mood to do work.

So, how many funds are generally needed for an investment portfolio?

How to configure it?

In fact, four or five are good, more is fine, but not necessary.

Investment depends on quality, not too much. Only when you are willing to give up can you gain something.

Wanting everything ends up with nothing.

You can allocate according to the investment sector of the fund and the investment style of the fund manager combined with your own investment preferences.

The fund is biased towards sectors such as medicine, consumption, technology, and military industry. Just choose a sector that you are optimistic about.

The styles of fund managers include aggressive, balanced, and conservative.

There is the sharpest spear and the strongest shield.

If your investment style is more aggressive, you can pair it with technology, consumer medicine, and stable hybrid funds.

If you are relatively balanced, then select some hybrid funds and bond funds with a sound investment style.