1. Asset liquidity
2. Expected annualized expected profitability
3. Risk
If you want to know a wealth management product, you must be clear about these three elements. At present, most domestic funds are the following four types: money funds, bond funds, equity funds and hybrid funds (index funds are classified as equity funds, regardless of convertible bonds and capital preservation funds).
Liquidity: money fund > bond fund > mixed fund ≥ equity fund.
Expected annualized expected return: stock fund ≥ mixed fund ≥ bond fund >; Monetary fund
Risk: stock fund ≥ mixed fund ≥ bond fund > money fund.
Everyone has a different investment style. Some people are still indifferent to the 50% fluctuation of the fund. Some people think it's terrible that the fund loses a few cents. Of course, they can't invest in the same fund. If you want to know your own investment style, you can do the "investor risk tolerance adjustment questionnaire" online, which is clear at a glance. Generally speaking, there are the following asset suggestions:
Aggressive portfolio: 80% equity fund, 20% money fund.
Steady investment portfolio: 30% standard bond fund, 70% conservative bond fund.
Conservative portfolio: 10% equity fund and 90% monetary fund.
Fund selection is mainly divided into three levels:
Primary: mainly based on fund performance, fund company visibility, fund manager's past performance, etc.
The main mistake made at this level is that it is easy to chase up funds with good short-term performance, thinking that choosing a good fund manager can get excess returns. We usually think that a fund has good short-term, medium-term and long-term performance on a certain day, but it is easy to be trapped. If a fund's short-term performance is very good, it will have a more obvious pulling effect on its long-term performance, so it will make a fund "look beautiful". Even the worst fund may perform better in a certain period of time, so the fund with outstanding short-term performance should be cautious, and the short-term performance is actually unreliable. In fact, the trends in the past two, three and five years are more referential, and of course, short-term performance should also be considered.
Intermediate: There is no absolute good or bad fund. Investors with different risk preferences and investment styles can dynamically adjust fund assets and fund varieties with different risk levels according to their own needs in different economic and market environments.
For example, ultra-conservative investors can consider the fixed expected annualized expected return share of money funds and graded funds. Investors who have a certain understanding of the stock market and are good at judging market trends but not good at stock selection can operate index funds and graded index funds with high risk share. The SSE 50 index is almost the worst index in the past four years, but it may be a very good index, because the safety margin of the 50 index is already very high, and rational investors will not choose funds solely based on performance. Therefore, intermediate fund investment should have a certain judgment on the market, be able to choose the appropriate fund types and specific fund varieties in different market environments, and allocate the appropriate proportion of venture fund assets according to their own risk tolerance.
Advanced: At this stage, investors will look at the specific asset allocation of the fund in detail, look at the fund's positions, and analyze the future trend of the fund's specific heavy positions.
Therefore, this stage requires investors to have a good judgment on the trend of individual stocks and sectors. If you are not optimistic about the fund's industry allocation and heavy stocks, then the fund will not be selected into its own asset allocation pool. Of course, investors who can reach this level are often very independent, and may be more willing to build their own stock portfolio than choose funds to invest. So there are very few fund investors at this level.