Diversified investment in 3~4 different types of stock funds. The market will favor different styles of funds at different times. It's best for our investment to include funds of various styles. For capital appreciation funds, the investment scope of fund managers is unlimited, not limited to specific ideas. Balanced funds belong to this category. The investment style of value fund pays more attention to the company's asset value. Such funds are highly related to strategies such as high dividends, low PE and pb roe. The main criterion of stock selection is not the profitability of the company, but the price. Blue chip growth fund mainly invests in blue chips in large and medium-sized markets, and pays more attention to the company's industry positioning, growth expectation and growth speed. This kind of fund is very similar to the high roe strategy, and most of the popular funds in the past two years belong to this style. Small-cap growth funds mainly invests in small-cap growth stocks. It is characterized by ups and downs, sometimes lagging behind the overall market, and sometimes far ahead. If these types of funds are included in the investment, in most market conditions, no matter which stock catches up with the market hotspots, it can get better returns.
For additional investment, the first type to consider is a few years behind the market. After understanding the above types of funds, when there is new cash to buy funds, you can choose to buy some funds that were not popular in the market in the past few years. The worse the luck now, the better the next time. Fund types that have performed poorly in the past few years may be over-represented in the next few years. In the long run, the benefits of different investment strategies are similar, and there will not be much difference. Check the portfolio regularly to ensure that the investment style is fixed. In addition to firmly grasping your own funds, you should also pay attention to, for example, funds of the same value. Recently, the trend of a fund has suddenly become particularly prominent, far better than other value funds.
Pay special attention at this time. Fund managers may have changed their style and no longer adhere to the value style. This kind of operation will almost certainly damage long-term performance. It is necessary to regularly check whether the position is consistent with the style in the fund's semi-annual report and annual report. For funds with unstable styles, it is best to eliminate them in time. For funds that adhere to the investment style, they should continue to hold. If you often exchange the funds you hold, you will not only lose the handling fee for application and redemption, but also face the opportunity cost that you will not hold when the transferred funds rise in the future.