First, understand that the fund is an investment product with certain risks, so it must have certain psychological endurance.
The money used to buy funds must be idle funds that are not used for a certain period of time, so don't invest all the money, so even if you face losses, you will have certain protection. When you buy a fund, you can pursue high returns according to your personal investment preferences, and you can buy stock funds, which are at greater risk of high returns. If the ability to resist risks is poor, it is recommended to buy bonds, currencies or capital preservation funds with relatively low risks. Of course, the returns of these funds are correspondingly low.
Second: when buying a fund, don't ignore it.
Investors should know which fund management company the fund they want to buy belongs to, what other products they have and what the income level is. Because buying a fund is buying a fund company, the overall performance of the company is particularly important. Good fund performance does not mean that the company's investment ability is excellent. In addition to the fund you want to invest in, its "brothers and sisters" should also have a good performance, which proves the management ability of the investment team.
Third: You must know the age of this fund.
To find out whether it was born in a bull market or a bear market, we should pay special attention to its performance in the bear market, especially its accumulated income and past annual income to judge its advantages and disadvantages. Whether it is stock investment, futures investment or fund investment, there are liquidity risks. Under normal circumstances, the flow of funds is still very smooth, and there will be no situation where buyers cannot be found. However, in the event of extreme situations such as huge redemption or suspension of redemption, the net value will fall, and investors will not be able to trade funds smoothly, which will eventually lead to losses. This is the liquidity risk of the fund.