Some investors think that they can only invest in one or two, because since choosing a fixed investment is time-saving and labor-saving, time and energy are limited, it is easy to observe the follow-up trend and real-time changes when buying one or two. Some investors believe that if you buy more than a dozen funds at the same time, you can put your eggs in a basket. No matter how the market turns, there will always be funds that perform well. Both methods can achieve real risk diversification, but they are not completely realistic.
If you only invest in one fund, the requirements for the fund target are very high. It is very difficult to choose such a fund. If the style of the fund is always inconsistent with the market, then the fund will not have good performance, and it can only watch it fall, and the investment experience is not good, so it is easy to give up.
If you invest in more than one fund at the same time, the fund correlation is relatively high, so you can't spread the risk. And too much money is really not suitable for timely tracking.
However, if you hold three or four funds at the same time, it will be different. It can really spread risks and reduce losses. More importantly, the mentality will not deteriorate, the west will not shine, and there will always be better income to help me improve the overall rate of return.
The fixed investment of the fund needs to allocate assets through the fund portfolio. And the combined fund, instead of buying it as soon as it sees the fund, holds more than a dozen funds at the same time, which makes the fund scattered and difficult to manage.
In terms of the number of funds, not as many as possible, but about 5 are more suitable. In this way, your assets are called allocation and combination.