1, the risk of loss is lower.
The daily fluctuation of common stock is 10%, and that of GEM and science and technology innovation board is 20%. It is normal for a stock to rise and fall by dozens of points in a few days, but the fund is different. It is rare for the fund to fluctuate by 3% a day, and the fluctuation range of the fund is even lower.
2. Funds can spread risks.
Buying a fund is equivalent to buying a basket of stocks. For some index funds, it is equivalent to buying the constituent stocks of the whole index. Buying a fund is like holding multiple stocks at the same time. However, it is very difficult to buy dozens of stocks directly.
3. The liquidity of actual transactions is better.
Under normal circumstances, funds can be bought and sold in time because of small fluctuations, but stocks are different. For example, in a bull market, the stocks you are optimistic about may have been in the daily limit, and there is no chance to intervene at all. In a bear market, there is no chance to sell the stocks that have fallen below the limit, so they are passively held. We can choose the liquidity of the fund. If you want to invest in the short term, you can choose a money fund. If you want to hold it for a long time, you can choose stock funds or some closed-end funds.
4. The funding threshold is very low.
Some funds have a minimum investment of 10 yuan, and basically everyone has it. However, there must be at least 1 10,000 or 20,000 yuan in the stock account to start buying stocks. Even like the capital threshold of 500,000 for the science and technology innovation board, the threshold of110,000 for the new third board selection layer is prohibitive.
There are many types of funds with wider adaptability. Of course, stocks also have their own unique advantages, and some advantages are also risks. The key depends on how you choose.