Establish a fund portfolio to reduce risks: You can establish a complete fund portfolio according to your risk tolerance. Through the combination of funds, risks can be effectively dispersed and benefits and risks can be balanced.
Learn to check the fund rating: the rating agencies in the market are all large-scale institutions with rating qualifications after approval, and will make a comprehensive evaluation based on the risk control of the fund. It is a good, simple and effective method to know the funds you invest in by referring to the fund rating.
Looking for a good fund manager: when you know a fund, you should focus on the situation of the fund manager. A good fund manager can seize the fund when the market rises and control the withdrawal when it falls.
Avoid funds with high turnover rate: From the perspective of long-term investment, it will be better if the turnover rate of funds is relatively low. Keeping the turnover rate low shows that fund managers stick to their investment philosophy and are valuable investments.
Pay attention to long-term return: short-term return is not the only criterion to judge the product level. Since the purpose of investing in fund bonds is to obtain stable and low-risk interest income, investors should not only pay attention to funds with high returns, but also choose funds with long-term stability and small net value fluctuations.
Generally speaking, to invest in a fund and find a suitable product, it is necessary to comprehensively consider the individual's financial situation and risk tolerance, and pay more attention to factors such as fund rating, fund manager and turnover rate. If we are worried about investment risk, we can reduce the risk through fund combination.
Fund, in English, refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations.
From the accounting point of view, capital is a narrow concept, which refers to funds with specific purposes and uses. The fund we are talking about mainly refers to the securities investment fund.
According to whether fund units can be increased or redeemed, they can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market.