Of course, there are also some investors who don't have a deep understanding of fund investment. They regard buying funds as collecting stamps. When they see a good fund, they will buy it. Slowly, they have more and more funds in their hands and don't know how to manage them.
We need to understand a truth: buying more is not diversification, and the number of funds held is not as large as possible. How much more? If you hold more than 10 at the same time, there is no doubt that it is too much.
Buying so many funds at the same time may not even remember the name of each fund, let alone the management and understanding of the funds, and it is also prone to many problems.
It is more difficult to manage through the concept of fund portfolio.
Portfolio structure of mutual funds
For fund investment, it is necessary to have a combination idea, considering the expected return of the combination, the correlation of investment targets, risk exposure and so on. And a combination often has a good structure and can balance each other. Common combination structures are:
Growth, value and quality
A shares, Hong Kong stocks and US stocks
Stocks, bonds, gold
Attack, midfield, defense
Short-term, medium-term and long-term
Core, satellite
If you hold a large number of funds at the same time, it is more difficult to manage and operate the funds in the form of portfolio. Every member of the team shoulders his own responsibilities, just like a team, each member performs his own duties and cooperates with each other on the field.
Too much money is not convenient for continuous tracking of funds.
Holding too many funds will also face a problem, that is, it is difficult to keep up with each fund. The more quantity, the more energy is consumed. Choosing a good fund does not mean that everything will be fine, but it is necessary to continue to follow up the performance of the fund.
If you don't know the fund thoroughly enough, it will easily lead to wrong investment decisions.
In particular, many investors like to choose funds according to their short-term performance rankings. In the real market, funds with good short-term performance are mostly short-lived. If you don't have the ability to understand continuously, you are likely to step on the thunder.
The income will not increase.
In the fund market, it is rare that the effect of 1+ 1 is greater than 2, that is to say, it is possible that you hold two good funds at the same time, but holding these two funds can only achieve mediocre returns. Why?
Because holding too many strategies can easily offset each other, especially in the domestic market with the characteristics of large and small disks rotating, if large, medium and small disks are configured at the same time, it will easily lead to the result of trade-off, and the more you buy, the more obvious this effect will be.
For example, you configure CSI 300, CSI 500, GEM, etc. , is equivalent to buying a market index. Holding multiple strategies can indeed smooth the market fluctuation, but if there is no prominent main attack strategy, the income will be obviously smoothed.
The effect of reducing risk is not obvious.
In order to achieve the purpose of diversification, we should consider the asset allocation with low correlation, not the more funds we buy, the better. If all the funds we buy are of the same type, it will not reduce the volatility.
Moreover, since you choose an investment fund, you can still withstand certain market fluctuations, and you don't need to blindly pursue low fluctuations and buy many funds.