The funds raised by the fund are handed over to professional investment managers to invest in other financial markets such as stocks and bonds. Compared with stocks, the risk is lower. So, do investors buy funds to buy up or down? What are the skills? Below we have prepared relevant contents for your reference.

For investors who buy at one time, they choose to buy up the fund, among which the fund in an upward trend shows that the current trend of the fund is good, and it is more likely that the fund will continue to rise in the later period. If investors buy, they may get good returns in a short period of time. For investors with fixed investment, they can choose to buy the fund and increase their positions by continuing to buy during the decline of the fund to spread risks and wait for the fund to rebound.

So, what skills do investors have when trading funds?

1, the skill of choosing a fund

First, the management ability of fund managers

The management ability of fund managers affects the performance of funds and the trend of fund net value. Investors should try their best to choose funds whose managers have strong operational ability and whose managed funds have high expected returns.

B. fund investment target.

The trend of fund investment target will also affect the trend of fund net value and investors' expectation of future income. Investors should choose those funds whose fund targets are on the rise and have great development potential and prospects.

C. Return rate of funds

The maximum withdrawal rate refers to the maximum loss rate that may occur at any time when purchasing funds. The higher the maximum withdrawal rate, the greater the loss. Therefore, investors try to choose funds with smaller standard deviation and lower maximum withdrawal rate.

2. Position control skills

When a novice buys a fund, he should control his position reasonably, and never buy it in full position. They can adopt pyramid position management method and rectangular position management method.

3. Take profit and stop loss skills

After investors buy funds, they should set up stop-loss positions to prevent risks, including target rate of return and price-earnings ratio.

4. Diversified investment

Investors should diversify their investments when buying funds. Don't put eggs in one basket. However, when diversifying investment, it is not advisable to invest too much. It's best to invest only three or four. Too much will increase the burden on investors.

At the same time, each fund cannot be in the same industry, or has a strong correlation, otherwise it will not play a role in diversifying risks; Reasonable allocation of positions between funds, for funds in the hot market, the positions are heavier, but not more than 50% of the positions.