Data:2009-12-12 2:34
Category: Money tips Release Date: 2007-03-28
Investors: How can we spread the risk by adjusting the mix?
Jin Li: Decentralized risk of a variety of techniques and levels of the points, for example, to deploy their capital in different regions of the market, although doing so can spread the risks of the region, but investors have ignored the relevance of the investment market is also an important consideration of elements. If the investment portfolio simply classified as a local stock and Global Equity Fund (MPF in the common choice), because the correlation between the assets is still high, so when the overall economy to the good, most of the assets within the portfolio performance will be made good; but when the economic downturn, the overall performance of the same time, involvement, portfolio performance will inevitably be a loss. In the long run, a combination of investment can not be dispersed and can not be regarded as a healthy investment portfolio.
Warrant advantage lies in its look at l (subscription card) and put (put warrant) the function, investors can use it to adjust the portfolio risk. If investors believe that some combination of the market or individual stocks and short-term performance may be weak, they can put an appropriate card to purchase the assets held by hedge risks; Similarly, if the shares or money that a short-term performance would be better, and may be appropriate to buy the subscription card, through warrants leverage to enhance portfolio returns.
As the Warrant to provide leverage effect, be able to achieve a small gain relative to capital investment results, we recommend investors to only about 10% of the portfolio of funds on the nest wheel. If it injects too much money at the same time when the risk will be larger by several times, investors should be risk-bearing capacity, control, invested in warrants on the funds, or to consult a professional financial adviser.
