Is it a loss to buy a foundation? You can reduce the investment risk in this way. In the definition of investment market, there is no absolute zero-risk investment, in other words, there is no investment that will never lose money. Even for treasury bonds with high security, fund investment is the same, and the risk cannot be eliminated. However, we can reduce the investment risk as much as possible by artificial means, for example, choosing low-risk fund varieties, such as adjusting fund positions, etc. What we are going to talk about today is one of the most important methods to reduce the risk. what is diversification? As the name implies, it is to spread the funds and divide them into several or many shares for investment. < /p > The first step in diversifying investment is to build a fund portfolio. Eggs are packed in baskets. Put all the eggs in one basket. If the basket is broken, all the eggs will fall out and break. If it is put in several baskets, the eggs in one basket are still intact, which can reduce the loss. So, how to build this portfolio? Which baskets should be divided into? < /p > There are different types of funds, and we mainly diversify our investments from the diversification of fund types. < /p > Funds are roughly divided into stock funds, hybrid funds, index funds, bond funds and monetary funds, and the investment risks are reduced in turn. If your investment style is extreme and you pursue high returns, you can consider allocating more stock funds. If you are afraid of investment risks, you can put the proportion of bond funds and monetary funds higher. Risk and return are always in direct proportion, and the higher the risk, the higher the return. If it is in a bull market, your equity fund will help you get more income, but a high proportion of monetary funds will affect your income level. If it is in a bear market, equity funds may suffer more serious losses, then your monetary fund can help you balance some risks. Your investment style determines your allocation ratio, and everyone's preferences are different < /p > The same type of fund can be diversified again. If you are a risk lover, you are keen on the high risk and high return of stock funds, and you can also choose stock funds in different industry sectors, such as some investing in finance, some investing in consumer industries, some investing in technology, etc. However, if you are faced with systemic risks such as the financial crisis, the effect of this diversification will be very pale. < /p > From the company's point of view, we can choose funds from different fund companies, such as funds with excellent performance of some small companies and funds with stable performance of some large companies. In short, we can look at the types of funds from different angles and then spread them out. < /p > The above-mentioned diversification methods are all from the perspective of space. We can also make efforts to diversify the same fund in time, which means that you can use 1, yuan for one fund at a time, or use this 1, yuan to buy the same fund in batches in different time periods. Because the price of the fund is different in different time periods, this can effectively reduce the risk brought by market fluctuations. Some people will find it too troublesome, so they can choose the way of fixed investment of the fund, that is, set the amount you buy at a time on the trading software, and set the fixed deduction time, such as once a week or once a month. < /p > To sum up, buying a fund has the risk of losing money, but we can reduce this risk through artificial operation, and reducing the risk of fund investment can be comprehensively considered from two dimensions: time and space.