What is the first step in investing in a fund? Some people answer that they want to open an account. Of course, that’s true, but what is the first step in the actual operation of a fund?
The idea of investing in a fund is to ask two questions before operating: First, how long can you invest?
The first question is: How long can you invest? What is the rating?
Then we can get down to the nitty-gritty.
The investment cycle question addresses what style of fund strategy you have.
If you can have an investment cycle of 20 years or more, such as a reserve pension, which is a longer cycle, you can choose some overly aggressive funds, such as all equity funds, but be careful to diversify, such as choosing different fund companies and investing in funds in different sectors with as little correlation as possible 認股權證.
If the investment cycle is 10 years or more, such as a reserve education fund, you can be a little more stable, with 70% equity funds plus 30% index-based, bond-based funds.
A much shorter investment cycle, about 4 or 5 years, with a conservative investment style and a much smaller proportion of equity funds, at least a guaranteed 40% or more of other solid categories.
Then evaluate it in the context of risk tolerance. If you are a completely conservative investor, you can’t choose an overly aggressive portfolio, even if you have a 23-year investment cycle. Your risk tolerance determines your attitude toward short-term changes, and you can’t continue to invest for the long term if your mood is unstable.
Second, when choosing a fund, try to choose a fund that is rated by a professional organization with lots of historical data references.
Basically, the whole investment plan is almost complete.
The fund investment is not a single fund battle, but a group battle of fund portfolios, and each subsequent strategic adjustment has to be seen in the context of the overall situation.