Needless to say, as we all know, any investment is risky, and so are investment funds. So do you know how risky investment funds are? This small series sorts out some misunderstandings in fund operation for your reference.
What are the misunderstandings in fund operation?
Excessive pursuit of high returns: some investors only pay attention to the fund's past performance and high returns, but ignore the risks. This may lead to blind investment in high-risk funds and easy to suffer losses. The solution is to give consideration to both risks and benefits when investing, and fully understand the risk management and investment strategy of the fund.
Short-term speculative mentality: Some investors hope to make quick profits through day trading. However, intraday trading often brings high transaction costs and taxes, and is easily disturbed by market fluctuations. We should adopt a long-term investment strategy and choose funds that meet our investment objectives and risk tolerance.
Incomplete understanding of funds: some investors lack the necessary understanding and research when choosing funds, and invest only by hearing or temporary enthusiasm. It is necessary to fully understand the risk-return characteristics and investment logic of the fund by reading the prospectus, the resume of the fund manager and the investment strategy of the fund.
Improper asset allocation: some investors concentrate all their funds on a certain fund or a certain type of assets, without proper diversification. Such asset allocation may lead to excessive concentration of risks, so we should make reasonable asset allocation according to our risk tolerance and investment objectives.
How to choose the right fund?
Investment objectives and duration: determine whether your investment objectives are long-term or short-term, and pursue stable income or growth income, so as to choose the corresponding fund type.
Risk tolerance: know your tolerance for investment risks and choose the right fund according to your risk preference.
Fund performance and risk: comprehensively consider the historical performance, stability and risk control ability of the fund, and select the fund with good performance and moderate risk.
Fund managers and management companies: understand the experience and performance of fund managers, as well as the reputation and professional ability of management companies.
Cost: Consider the fund's sales expenses, management expenses and transaction expenses, and try to choose a fund with reasonable rate.
How risky is the investment fund?
1, the fund also changes with the stock market and economic trends. If there is economic stagnation, financial crisis, war, earthquake or other unstable factors in the world, the income of the fund will certainly be greatly affected.
2. Funds are operated by people, but there are operational risks and moral risks when people operate. No matter how strict the regulatory measures are, there will always be loopholes, not to mention funds. Fund companies go bankrupt every year in the world.
3, the company's business philosophy, the vision and level of managers. After all, people like Soros are a minority, and there are not many investment experts who can make money for free, so the performance of different fund companies varies greatly. The better the operation, the higher the income and the higher the capital income. Or conversely, it is best for Dallas to go to the audience to choose the managers of fund companies who have experienced the whole process of bear market shock and bull market development, that is to say, they have seen big waves and sands.
Redemption skills of fund investment
First: Look at the market outlook before operating.
The income from fund investment comes from the future. For example, if you want to redeem stock funds, you can first look at whether the future development of the stock market is a bull market or a bear market. When deciding whether to redeem, you should make a choice on the timing. If it is a bull market, it can be held for a period of time to maximize the benefits. If it is a bear market, redeem it in advance and put it in the bag.
Second: switch to other products.
Converting high-risk fund products into low-risk fund products is also a kind of redemption, such as converting stock funds into money funds. This can reduce the cost, the conversion fee is generally lower than the redemption fee, while the money fund has low risk, equivalent to cash, and the income is higher than the current interest. Therefore, conversion is also an idea of redemption.
Third: regular fixed redemption
Like regular investment, regular fixed redemption can do daily cash management and stabilize market fluctuations. Fixed-term redemption is a redemption method of fixed-term investment.
Main advantages
Have the advantages of expert financial management (investment technology, well-informed information and understanding of national policies, etc.). )
The benefits of many a mickle makes a mickle.
3. Pay attention to the investment portfolio and diversify the risk of capital investment.
The cost is relatively low (with tax incentives)
5. Relatively high transparency (open-end fund)
What does it mean for the fund to continue to fall?
The continuous decline of the fund means that the target of fund investment has been falling. When buying a fund, if the fund continues to fall and has no ability to take risks, it is generally recommended to stop loss and redeem it in time.
If you have the ability to take risks, the fund itself is fine, but the market is affected and the market is not good for the time being. You can also wait for the opportunity, or redeem a part, and leave a part to see how the fund market is behind, and then decide whether to redeem or hold it.
Generally speaking, there are ups and downs and fluctuations in funds. And when the market of some funds is not good, there will be a continuous year of decline. This decline means that the whole fund will fall, not every day, but only a little more. If you choose a bad fund, the loss of the fund will be more serious. Therefore, when you buy badly, don't be reluctant. It is also important to stop loss in time.
When choosing a fund, you must choose a good fund to hold for a long time, such as referring to past performance, fund manager, fund size and other aspects of analysis, and then analyze whether to buy according to your risk tolerance.
When buying, you can also consider buying in batches with fixed investment to reduce the risk, because when buying a fund, you can't judge whether it is high or status, and the fixed investment can be shared equally.