There is a saying in Buffett's autobiography: "The accumulation of wealth is the right choice and long-term persistence." There are countless possibilities waiting for you in the fund market. Here, I would like to share with you how to contact the fund in the first step for your reference.
What is the first step to contact the fund?
The first step to contact the fund can be to understand the basic knowledge and ideas of the fund. Here are some suggestions that can be used as the first step to contact the fund:
Learn the definition and principle of fund: understand that fund is a tool for collective investment. Fund companies allocate and manage assets by professional fund managers by raising investors' funds.
Understand the types and classification of funds: understand the different types of funds, such as stock funds, bond funds, hybrid funds and so on. , and their risk and return characteristics.
Learn the operation mode of the fund: learn the operation mode of the fund, such as trading mechanism, net worth calculation, rate structure, etc., and understand the trading process and related expenses of the fund.
Familiar with fund performance evaluation indicators: learn fund evaluation indicators, such as net growth rate, annualized rate of return, Sharp ratio, etc. To help evaluate the performance of the fund.
Pay attention to the relevant news and market trends of the fund: read the news and market reports to understand the latest trends and trends of the fund industry.
Risk sources of purchasing funds
Market risk: Fund investment is affected by market fluctuations, such as the rise and fall of the stock market and the change of interest rate in the bond market, which will have an impact on the value of the fund.
Risk of fund manager: the ability, research level and decision-making ability of fund manager directly affect the performance of fund, and choosing inappropriate fund manager may lead to increased investment risk.
Operational risk: There may be risks such as operational mistakes and execution delays during the operation of the fund, such as mistaken purchase and excessive trading.
What are the basic knowledge of the fund?
Fund types: Understand different types of funds such as stock funds, bond funds, hybrid funds and index funds, as well as their investment strategies and risk characteristics.
Fund net value and share: understand the concept of fund net value, that is, the asset value corresponding to each fund share; Learn how to calculate the net value of the fund and track the changes of the net value of the fund.
Fund expenses: understand the composition of fund expenses, including management fees, custody fees, sales service fees, and how to calculate and compare fund expenses.
Fund performance and risk: know how to analyze and evaluate the historical performance of the fund, including annual rate of return, risk indicators (such as volatility), relative index, etc., so as to understand the risk level of the fund.
Fund managers and management teams: Understand the experience and investment style of fund managers, as well as the professionalism and asset management capabilities of fund companies.
Investment objectives and risk tolerance: make clear your investment objectives and needs, such as long-term investment or short-term planning, and choose the appropriate fund type according to your own situation.
What do we need to think before buying a fund?
Investment goal: define your long-term capital growth, retirement plan, education fund and other investment goals. Select the appropriate fund type and risk level according to the target.
Risk tolerance: evaluate your risk tolerance, that is, how much investment risk you can accept. Risk is related to return. Generally speaking, equity funds with high investment risks may bring higher potential returns, but they are also accompanied by greater volatility.
Investment period: determine the investment period, whether it is long-term investment or short-term planning. Long-term investment can consider choosing stock funds, and short-term planning may be more suitable for choosing bond funds or money market funds.
Diversification: Consider diversifying the investment to different types of funds or multiple fund companies to reduce the overall risk of the portfolio.
Expense: Understand the expense structure and rate level of the fund, including management fee, custody fee and sales service fee. Choosing a low-cost fund can improve the investment income.
Fund companies and fund managers: Understand the credibility and asset management capabilities of fund companies, as well as the experience and investment style of fund managers.
Supervision and information disclosure: understand the supervision organization and relevant regulations of the fund, as well as the degree of information disclosure and public disclosure of the fund, so as to have comprehensive information when making investment decisions.
You must look at the investment that you want to get started.
Types of funds
Many investors have no idea about the types of funds at the beginning of buying them, and they don't understand why some funds have high returns and can continue to be popular in the short term.
And some funds are not in line with market trends. When other funds keep climbing, or when the cliff is green, they have been quietly and steadily raising their heads.
With the deepening of study, I understand that the reason is because of the different types of funds.
1, Monetary Fund
This kind of fund should be the earliest fund we have dealt with. This kind of fund is characterized by investing in short-term monetary instruments with relatively low returns, such as the familiar Yu 'ebao.
2. Bond funds
The asset ratio of such funds is: 80% invested in bonds and 20% invested in stocks or cash.
3. Equity funds
This kind of fund is just the opposite of bond fund. 80% of the fund's assets are invested in stocks and 20% in bonds.
4. Hybrid funds
As the name implies, the investment direction of this fund's assets is diversified, which may include stocks, bonds, currencies and other instruments at the same time. The risk is lower than that of stock funds but higher than that of money funds.