Analyze how much fluctuation you have to bear when buying a fund

From the perspective of accounting, a fund is a narrow concept, which means funds with specific purposes and uses. The funds we mentioned mainly refer to securities investment funds. Xiaobian here sorted out how much fluctuation to bear when buying a fund, for your reference, I hope everyone will gain something in the reading process!

How much fluctuation and risk to bear

"Risk tolerance" is actually a very key element in investment.

It has a profound impact on the proportion of stock assets and bond assets that small partners should hold in the portfolio, whether they should choose more stock funds or bond funds in fund selection, whether they should lay out quickly or slowly in different stages of the stock and bond market, and so on.

It can be said with certainty that if the potential risk level of the portfolio and fund chosen by the small partners is obviously higher than their real risk tolerance, then sooner or later, the small partners will lose sleep with blood and anxiety.

From the data of the past 1 years, the fluctuation of the stock market itself is greater than the overall level of the fund. The specific fluctuation level from high to low is:

Major stock indexes >; Equity funds > Stock-debt hybrid fund > Pure debt fund > Monetary fund.

generally speaking, the holding experience of the same type of fund is often better than that of the fund with smaller historical volatility.

Decide how to choose and allocate according to your own risk preference

1. Steady investors: These investors are determined by their own personalities. They are cautious and unwilling to take big risks. In addition, considering their future life goals and family responsibilities, they always avoid the impact of investment accidents on their families, so they are cautious when investing, as long as they have a stable rate of return.

summary: the stable investors mainly choose bond funds with low risk level, and can match a small number of mixed funds or stock funds. The reference ratio is 8% bond funds +2% mixed (stock) funds.

2. Balanced investors: This kind of investors have a clear understanding of their self-risk tolerance. They are eager to get higher investment returns and can bear certain risks, and generally prefer long-term, stable and sustainable funds.

summary: balanced investors mainly choose mixed funds with medium risk when choosing funds, or choose the allocation ratio of bond funds and equity funds independently. The reference ratio is 6% bond funds +4% equity funds.

3. Aggressive investors: Aggressive investors focus on long-term value-added investment, dare to take risks, and can bear certain risks of principal loss, but they should pay attention to defense.

summary: when enterprising investors choose funds, they mainly use high-risk equity funds, and at the same time use bond funds as defense, with a reference ratio of 8% equity funds +2% bond funds.

Look at the value-added speed of the variety itself

In fact, when a certain investment is made, the short-term income has something to do with fluctuation, but the long-term investment income has little to do with fluctuation. More depends on the value-added speed of the variety itself.

First of all, high short-term fluctuations are more likely to bring investment opportunities.

high-volatility varieties are usually reflected in the sharp rise and fall of stock prices, and such varieties are prone to extremely underestimated opportunities when they fluctuate violently in the short term.

If the fund plummets in the short term, you can buy a very cheap price by making a fixed investment at this time, and quickly reduce the cost. After the fund bounces back, you can start making profits.

from this point of view, high fluctuation is beneficial to the initial stage of fixed investment.

however, if we look at it after a long time, the long-term fixed investment income has little to do with fluctuations.

because the core factor that determines the long-term fixed investment income is the income of the invested fund itself.

if the long-term income of the invested fund is high, the income of the long-term fixed investment will be higher.

therefore, in the long-term fixed investment, it is not simply to choose varieties with large fluctuations. Fluctuation is only a secondary factor, and the benefits of the variety itself are more noteworthy.

In recent two years, the returns of funds purchased by many investors are generally unsatisfactory. What caused the large losses of most funds? For these questions of investors, Mars, an analyst at Shanghai Securities Fund Evaluation Center, pointed out that, firstly, the essence of fund products is a portfolio of securities, and the performance of fund returns is closely related to the performance of the underlying market. In the continuous decline of the stock market, it is difficult for stock funds and hybrid funds, which mainly invest in stocks, to achieve positive returns. Under the rising stock market, most partial stock funds can often achieve positive returns. Therefore, it is impossible for funds to create myths and create high positive returns in the continuous decline of the market in recent years.

in terms of long-term performance, in most cases, the overall performance of funds is better than that of individual investors, especially in bull market and volatile market. For example, in 26 and 27, more than 8% of equity funds achieved more than 1% returns, while the proportion of individual investors did not reach 5% to 3% returns in 212, and the survey showed that more than 5% of individual investors lost 5% to 5%. Therefore, the fund is still a good investment tool for individual investors to participate in the capital market.

All kinds of problems in China's stock market construction, economic development and asset management industry can't be eliminated in a short time, and they all need to be promoted by the rationality of the market as a whole. However, as investors themselves, we must measure our risk tolerance clearly and not blindly listen to the propaganda of sales staff. If your own risk tolerance is weak or the funds you want to use in the short term, you can't invest too much in a single stock fund, so as not to be greatly affected by the risk of stock market fluctuations. Therefore, for individual investors, it is more meaningful to have a long-term investment mentality, choose appropriate fund products according to their own risk tolerance and renewal, avoid excessively chasing hot funds with outstanding short-term returns, pay more attention to funds with relatively stable long-term performance, and spread risks and obtain long-term stable returns through fixed investment and portfolio allocation.

finally, there is no right or wrong investment, only whether it is appropriate. What suits you is the best way to invest.

Tip:

First, we should pay attention to arranging the proportion of fund varieties according to our risk tolerance and investment purpose. Choose the fund that suits you best, and set an investment ceiling when buying partial stock funds.

Second, be careful not to buy the wrong "fund". The popularity of funds has led to some fake and inferior products "fishing in troubled waters", so we should pay attention to identification.

Third, pay attention to the post-maintenance of your account. Although the fund is worry-free, it should not be left unattended. Always pay attention to the new announcements on the fund's website, so as to get a more comprehensive and timely understanding of the funds you hold.

Fourth, we should pay attention to buying funds and don't care too much about the net value of funds. In fact, the fund's income is only related to the net growth rate. As long as the fund's net growth rate remains ahead, its income will naturally be high.

Fifth, we should be careful not to "love the new and hate the old" and not blindly pursue the new fund. Although the new fund has inherent advantages such as preferential prices, the old fund has long-term operating experience and reasonable positions, which is more worthy of attention and investment.

Sixth, be careful not to buy dividend funds unilaterally. Fund dividend is the return of investors' previous income, so it is more reasonable to change the dividend method to "dividend reinvestment" as far as possible.

Seventh, we should pay attention not to talk about heroes in short-term ups and downs. It is obviously unscientific to judge the merits of the fund by short-term ups and downs, and it is necessary to comprehensively evaluate the fund in many aspects and make a long-term investigation.

Eighth, we should pay attention to the flexible choice of investment strategies such as stable and worry-free fixed investment and affordable and simple dividend conversion.

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