1, object dispersion method
Distribute funds to different investment objects, for example, investors can disperse funds to different asset classes, such as stocks, bonds, real estate and funds. The advantage of this is that if one asset class does not perform well, the performance of other asset classes may make up for it. At the same time, even in the same industry, we should separate the funds to buy the securities of different enterprises or companies instead of investing in the securities of one company.
2. Time dispersion method
It is difficult for investors to accurately grasp the changes in the securities market, and sometimes even make mistakes. Because of this, the investment opportunity can be dispersed. For example, you can divide the funds in your hands into several parts and complete the investment in a few months or longer to avoid the risks caused by too concentrated investment timing or inaccurate timing. At the same time, it is also necessary to avoid frequent operations that are too concentrated in a certain period of time, resulting in higher handling fees.
3. Geographical dispersion method
Investors can consider investing their funds in markets in different regions, which can reduce the investment risks in specific markets, including policy changes, natural disasters or economic recession. For example, investors can spread their funds to China and the United States. When the US market falls, the China market may perform better, thus reducing the overall risk of investors.
When investors diversify their investments, the number should not be too large, and it is best to invest only three or four. Too much will increase the burden on investors.
At the same time, the subject matter cannot be the same industry or a fund with strong correlation, otherwise it will not play a role in diversifying risks; Reasonable allocation of positions between funds, for the theme in the market hot spot, its position is heavier, but not more than 50% of the positions.