's recent market has been up and down, giving people an unpredictable feeling: "When you want to get close to it, the financial market will kick you far away. When you want to stay away from it, it seduces you into the market in various ways." Some investors are not willing to accept the export situation after losing money, nor are they willing to stop and have no day to turn around, so they began to study the investment rules of the fund market so that they can avoid detours in the future to achieve financial freedom as soon as possible.
No matter how investors invest in funds, the first thing to do is to figure out the most popular fund products in the market, namely hybrid funds, theme funds, and index funds.
(1) What is a mixed fund?
is a mutual fund that includes both growth stocks, income stocks, and fixed income investments such as bonds in the investment portfolio. The purpose of the design of
hybrid fund is to allow investors to diversify their investments by choosing a fund variety without purchasing stock funds, bond funds and money market funds with different styles.
(2) What is a theme fund?
uses various themes as investment targets and purchases a package of stocks based on relevant themes, thereby allocating them to related fund products. For example, liquor funds, cyclical funds, technology funds, energy funds, etc.
Investors who want to purchase a certain type of market theme can directly choose the fund allocation of related themes. The biggest advantage of this is that it is closely related to the market trend.
(3) What is an index fund?
is a fund product that uses specific indexes (such as the Shanghai and Shenzhen 300 Index, S&P 500 Index, Nasdaq 100 Index, Nikkei 225 Index, etc.) as the underlying index, and uses the constituent stocks of the index as the investment targets, and builds an investment portfolio by purchasing all or part of the constituent stocks of the index to track the performance of the underlying index.
Mixed funds, theme funds, and index funds, their respective advantages and disadvantages?
(1) Pros and cons of mixed funds?
Mixed funds are quite "popular" in structural markets. Fund managers can make reasonable allocations through their professional abilities and participate flexibly later. Doing so can also change their investment strategies in a timely manner when the market style changes.
Mixed funds have high requirements for fund managers' trading ability. Perhaps one year later, some mixed funds have annualized yields and profits have reached more than 50%, while some mixed funds have annualized yield losses of more than 30%. This phenomenon is very common. Therefore, investors should pay attention to the flexible allocation of funds. The key is to look at the investment ability of the fund manager. Do not only see the appearance but ignore the essence.
(2) Pros and cons of the theme type?
The market has changed rapidly recently. One is the hot speculation of cyclical funds, the other is the trend of technology funds, and the other is the leading new energy funds. Investors can choose from the topics they like to find fund products that suit them.
theme fund investment direction is single. Investors purchase liquor funds. Only when the liquor sector rises as a whole can it drive the liquor funds in their hands to rise. Moreover, different liquor funds allocate weights, which will also lead to different increases or decreases in the net value of the fund unit. When riding a bull and watching the bear, I found that once the liquor is "not good", it will be transferred to the craze of new energy funds. Investors can only replace the funds in their hands, or buy a new energy fund to keep up with the market trend.
(3) Pros and cons of index funds?
index funds can cross bull and bear markets, and this type of fund product does not have a strict stop loss line. As long as investors are willing to continue holding, there will be no large-scale redemption of funds. Even if the index falls by 30%, index funds will still stand firm. After the bull market comes, the index rises, and index funds will also have a day to turn around.
index funds operate at almost 100% of their positions. When there is a market pullback or bear market, the fund can only fall passively with full positions and cannot perform operations such as reducing positions and avoiding risks.Therefore, investors will face losses, which is also a problem that investors should pay attention to.
When investors choose these three types of fund products, they mainly analyze based on their own situation and market conditions. When investing, you must at least understand what you are buying and selling? Only by being at ease in the future market, changing the investment direction of funds according to changes in the market, and investing in the direction of the investment portfolio, so as to flexibly respond to various market conditions. Riniu Kanxiong believes that investors will not always be confused after researching these three types of fund products. Then, they will make comprehensive choices based on indicators such as fund managers, fund holdings, maximum yield, maximum drawdown rate and other indicators. This is the issue that a qualified investor should consider.
