First of all, the choice of track, the choice of those popular tracks worthy of investment, should conform to the general direction of economic development and policy support, rather than the popularity caused by short-term events. Moreover, we must pay attention to performance. Only with performance support can we have confidence and a good foundation can we accumulate wealth. In addition, the future should be sustainable.
Hot spots that meet these conditions are truly worth investing in.
Then look at the specific funds. There may be many funds corresponding to a hot spot, and we are looking for the most suitable one.
First of all, choose the corresponding theme index fund or active stock fund according to your own needs. The advantage of index funds is that they can fully cover hot spots. As long as you are firmly optimistic about a hot topic, it is relatively safe to choose a theme index fund. Of course, the biggest advantage of the theme stock fund lies in the expected return, which makes it easier to obtain the excess return beyond the market, but at the same time, the fund's volatility will be higher.
Finally, remember not to bet on a single hot spot, and try to achieve a balanced allocation. When investing in hot spots, don't bet heavily on a single hot spot, but try to balance several gold tracks and balance risks. On the one hand, the expected return is high, on the other hand, it is also volatile. It is better not to choose funds with changeable investment style, inadequate exit control and relatively single holding industry.