Speaking of fund investment, many people know and want to try to buy funds, but they know little about funds and don't know how to start. So what is the most important thing for an investment fund? The following small series will answer your question.
What is the most important thing about investment funds?
Objectives and risk tolerance: define your investment objectives and determine the risk level you can bear. Different types of funds have different risk levels and income expectations, so choose the right fund according to your own needs and risk preferences.
Fund companies and fund managers: study the reputation, performance and management ability of fund companies and evaluate the experience and investment strategy of fund managers. Choose fund companies with good reputation and sound management, and fund managers with rich experience and good performance.
Fund types and strategies: Understand different types of funds such as stock, bond and index, and study their investment strategies and performance. According to their own financial objectives and risk tolerance, choose the appropriate fund type and strategy.
Diversified investment and fixed investment on a regular basis: spread funds among multiple funds to reduce investment risks. Consider regular fixed investment, share the market fluctuation equally by purchasing fund shares on a regular basis, and achieve the investment goal by means of long-term investment.
Why should fund investment also be cautious?
Risk management: Investment funds involve market risks, and market changes may lead to investment losses. We need to realize that fund investment is risky, and we should choose and diversify investments according to our risk tolerance, so as to effectively manage risks.
Choice risk: There are many different fund products in the fund market, and some funds may be more risky, such as high-risk speculative funds. You need to choose the right fund carefully to avoid excessive pursuit of high returns and neglect risks.
Misleading and misjudgment: sometimes there will be misleading market information or misjudgment of funds, which may have an adverse impact on investment decisions. We need to be rational and objective, and make decisions through full investigation and analysis.
Why can't Xiaobai buy a fund directly?
It's not that small investors can't buy funds directly, but it's helpful for investors who lack investment experience to know some important skills of fund operation.
Important skills of fund operation
The following are some important skills of fund operation:
Regular investment: adopt the strategy of regular investment and buy fund shares at a predetermined amount on a regular basis, regardless of market ups and downs. This strategy can average the investment cost and reduce the risk of market fluctuation.
Diversified investment: the investment funds are dispersed in different types of funds with different risks, so as to reduce the risks brought by a single investment target. You can choose stock funds, bond funds and hybrid funds for diversified investment.
Matching investment objectives with risk tolerance: Choose a suitable fund according to your investment objectives, time and risk tolerance. If it is a long-term investment goal, you can choose a more stable fund type; If the risk tolerance is high, you can consider equity funds.
Understand fund management companies and managers: investigate and evaluate the historical performance, investment strategy and management ability of fund management companies and managers, and choose fund companies and managers with stable performance and reliable management experience.
Pay attention to the cost: evaluate the cost structure and rate of the fund, and understand the impact of management fees, subscription fees, redemption fees and other expenses on the return on investment. Choosing a low-rate fund may be more conducive to long-term investment returns.
Pay attention to the risk-return characteristics of the fund: understand the investment strategy and risk-return characteristics of the fund and match it with its own investment objectives and risk tolerance.
For small white investors, it is recommended to seek the opinions of financial professionals or investment consultants and make appropriate investment plans according to their own conditions. At the same time, continuous learning and understanding of relevant investment knowledge can help small white investors better understand and deal with fund investment risks.
A fund is a certain amount of money set up for a certain purpose. We often say that fund investment often refers to public offering of funds in a narrow sense. Fund companies set up new funds to sell fund shares, and investors use the funds to buy fund shares. In this way, the funds will be gathered to form independent property, which will be managed by the fund custodian (bank), and the manager (fund company) will invest the funds in other large-scale assets according to the provisions of the fund contract to obtain income and share the interests and risks with investors.
According to the different investment directions, funds can be roughly divided into money funds (mainly investing in bank deposit certificates, short-term government bonds, etc.). ), bond funds (mainly investing in bonds), stock funds (mainly investing in stocks), and hybrid funds (flexibly allocating assets such as stocks and bonds).
Monetary fund has low risk, low income and good liquidity, which is suitable for people with poor risk tolerance and change management.
Bond funds have low risks and slightly higher returns than money funds, and are suitable for people who pursue stable returns and high capital security.
Equity funds have high risks and high returns, which are suitable for those who dare to take risks and pursue high returns.