With the popularization of the concept of financial management, many people are no longer satisfied with bank deposits, but begin to choose other financial management methods that have a better chance of beating inflation, such as funds, bonds and stocks. For novice investors, funds and experience are limited, and their risk tolerance is generally weak, so it is safer to choose funds as a low-risk investment method. So how should a novice buy a fund?

1. Select the fund type

Different investors have different risk preferences, and novices tend to be conservative or balanced. It is best to choose a fund that matches their risk tolerance.

Conservative investors are more suitable to invest in money funds, while cautious investors can choose bond funds. The risk of bond funds is slightly higher than that of money funds, but the decline is usually small.

2. Choose the fund investment method.

Fund investment is divided into one-time purchase and fixed investment. From the perspective of expected income, fixed investment and one-time purchase have no absolute advantage, but from the perspective of investment risk, fixed investment is better than one-time purchase. The fixed investment of the fund belongs to buying in batches, which not only relieves the financial pressure of investors, but also disperses the investment risk, and has low requirements for investors' fund selection ability.

Novices are usually not advised to buy equity funds or hybrid funds. Although the expected return is relatively high, the risk is also high. If you really want to participate, you can choose the way of fixed investment of the fund to dilute the investment risk.

3. Choose a new fund or an old fund.

Novices often have a soft spot for new funds, thinking that buying new funds is just like playing new shares, which will inevitably rise. In fact, the replacement cost of the new fund is lower than that of the old fund, but the new fund has almost no past performance to refer to, so it is difficult to judge its future development trend.

The above information about how beginners choose to buy funds, I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.