The first step is to deeply understand the industries and themes involved in the theme fund you want to invest in, always remember to invest within your own cognitive range, and don't easily set foot in an industry that you know nothing about and invest rashly.
At the same time, we can learn more about the historical performance laws of various industries in different economic cycles. Generally speaking, in the stage of economic recovery, traditional industries such as construction and building materials are the first to benefit. In the stage of economic growth, capital-intensive industries will perform well, such as mechanical equipment and cyclical electronic products. At the stage of economic prosperity, it is time for non-essential consumer goods to perform on stage.
The second step is to strictly control trading positions and industry proportions.
The fluctuation of industry theme funds will be relatively large, and it is difficult to accurately grasp the market scale when industry hotspots break out. Generally speaking, it is not recommended to heavily fund a certain industry theme fund, but to allocate several promising industries with the concept of diversified investment, with industries with weak periodicity at the core and industries with strong periodicity at the satellite position.
The third step is to invest in industry index funds.
It is a good choice to lay out an industry through index funds, which have high positions, close industry tracking and lower risk coefficient than ordinary industry stock funds.