Industry theme funds have always been a popular variety in the fund market, because investment is more "stimulating", with great fluctuations and obvious returns. What's the difference between these two types of funds? Which is more worth investing in?

The investment of industry theme funds is mainly concentrated in a certain industry or theme. Generally, the proportion of investment in a certain industry or theme needs to be greater than 80%, while the balanced allocation fund has no such restriction and can be selected from multiple markets in the whole industry.

Generally speaking, which is more suitable for us to choose, the balanced allocation fund or the industry theme fund?

In fact, this choice is like the choice of learning from the west.

Public offering funds provide ordinary investors with two paths to choose from. One way is to borrow money, which means you can join the Tang Priest and go to the Western Heaven to learn Buddhist scriptures. Another way is to borrow tools, which means that we can be the Monkey King or Pig Bajie or Friar Sand, and go to the Western Heaven to learn from the scriptures with the most powerful weapons we think.

Obviously, the advantage of lending is that we choose a generalist, which corresponds to a fund manager with balanced investment in multiple industries. Fund managers can use the Monkey King, Pig Bajie and Friar Sand irregularly according to the actual situation of economic development and industry rotation, and are not limited by the investment scope and investment ratio of the industry.

Under the background of China's long-term economic improvement, the high probability of balanced allocation of funds can finally help us complete the task of learning from the past. Obtain the average market return, which is suitable for investors with moderate risk preference.

Borrowing tools, as the name implies, requires us to choose good roles. The magic weapon on the road to learning from the classics corresponds to various categories in our industry theme fund. If we can choose the tuyere industry, then our dream of doubling the base is not far away. The biggest feature of industry theme funds is that the targets are relatively concentrated, and the correlation with the industry is very high. When the industry is at the forefront, the fund performance will naturally be very bright, but high concentration has advantages and risks. Once the wind blows, or the industry encounters a black swan, it will also have a great impact on the performance of the fund.