Four main points of a rational fund investment Money Tips

Category: Money tips Release Date: 2007-02-14

After a sharp rise in the stock market in 2006, the stock fund average return rate as high as 120% stronger after the "buy fund" instead of the once red-hot "buy houses" and become the people gossip the hottest investment topics. Effects of the Fund to make money driven into the 2007 Fund have been expanding the number of fund investors, the rapid increase, the fund net worth affect the Christian Democratic Change has become one of the red line.

Recent stock market movements once fever, followed by a substantial shock, January 31-day benchmark Shanghai Composite Index fell 144.23 points, Shen Chengzhi is even more one-day fall 629.40 points, the Christian Democrats were (especially the new entrants to the Christian Democrats) mind is also sat a the "roller coaster." In such a difficult set ups and downs of the market conditions, the people should become more rational investment funds, in this, we propose to note the following points:

1, rational state of mind, adhere to long-term investment

In 2006 in China's stock market surged, driven by stocks, funds, brokerage investment products and other related financial products has brought high returns for investors, the market seemed to hot to play a tonic for investors, have opened its purse strings to invest in securities the market, some radical even by those who arrived in room, guard, invest in, etc.. We believe that the stock market vagaries, from a rational perspective, the 2006 hot Quotes are less likely to copy, even if the financial management by the professional bodies are also unpredictable income of the Fund, investors must be relatively rational and peaceful attitude in dealing with the fund financial management.

Fund as a long-term financial management tool, investors should not short-term Change seen as too important, as long as the development of China's economy and stock market confidence, they should insist on the concept of long-term investment. Right Christian Democrats, the more important is the planning goal of a good family financial management, select the operational stability and good performance of the fund companies, as well as suited to their risk appetite and financial needs of fund products, while weakening the Fund's investments when the election strategy, this can to the long-term capital appreciation in order to better guarantee.

From the operation of the fund's investment characteristics and performance of mature funds in overseas markets shows that a higher return on long-term investment funds are also more stable. We can look at the U.S. asset management companies, a well-known instance of an advertisement from: A pier on two porters, one of them 20 years, has maintained that the method used at fixed long-term investment funds, while the other did not do anything investment; 20 years later, the former long-term investment funds open their yacht to sea fun, not investment, which is still in front of porters at the pier. This case tells us that insist on long-term investment philosophy, but also help to achieve personal financial blueprint.

China's fund industry is still in early stages of development, investor awareness of the Fund's investments are gradually matured, we recommend that investors can read the well-known professional fund ratings issued by rating agency reports, research and analysis and other documents, fully aware of the Fund risk-return characteristics and ratings and other relevant information, establish a rational concept of long-term investment.

Second, a full assessment of individual risk tolerance, select the appropriate fund products

Each person on the "risk" different understanding of risk tolerance is also very different. Investors should buy the fund before the fund's risk-reward characteristics have a correct understanding of relevant content, that is prepared to use the types of funds for investment, the expected return on investment is how much it can bear the extent and rate of investment losses, held by the Fund's most long-term issues such as there is generally a clear self "investigation." The findings of these problems is actually a return of investor risk tolerance for an effective assessment of this is particularly important for the Fund's investments.

So, for the investments, income and risk is what kind of relationship? Of course, risk and return are mutually matched, high-yield associated with greater risk, low-risk variety of the gains is relatively low. Corresponds to a different risk-return characteristics of the different types of investment funds and investment, investors should be based on their risk and return preferences to select the appropriate type and investment methods. According to "the operation of securities investment fund management approach," the relevant provisions of the object based on the Fund's investment fund is divided into four different basic types: stock funds, hybrid funds, bond funds and money funds. From the view of the risks to sort from low to high, then the lowest risk of a currency fund, up followed by bond funds, hybrid funds, equity funds the highest risk; from gains in terms of equity fund returns are the highest, followed by mixed funds, bond funds, the IMF, but the lowest income mobility is better. Specific classification is as follows, for investors:

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Equity Funds: 60% or more of the Fund's assets invested in stocks;

Bond Fund: 80% above the Fund's assets invested in bonds;

Monetary Fund: only invest in money market instruments of the Fund in money market funds;

Hybrid Funds: Investing in stocks, bonds and money market instruments and equity investments and bond investments do not meet the ratio of stock funds, bond funds under the investment ratio for the mixed fund.

3, with the help of professional teams, through different types of the Fund's investment portfolio risk diversification

As the saying goes, "Do not put all their eggs in one basket", these words apply equally to the Fund's investments. Fund as an investment product is the existence of financial risk, investors must make rational allocation of funds, risk diversification, while in the pursuit of relatively stable earnings.

In general, securities investment risk can be divided into non-systemic risk and systemic risk categories. The former mainly refers to the individual stock or industry valuation encountered pressure and bad news, etc., can be decentralized investment products, select the value of undervalued stocks and other means to circumvent; the so-called systemic risk, it refers to the overall value of the stock market overvalued brought about by the overall decline in the risk of investment losses, this risk is through diversification of investments there is no way to eliminate, but can make use of asset management, prevention means. For the Fund's investments, the non-systematic risk, the main can rely on fund companies and fund managers to vote the scientific research methods, good investment and research capability to avoid; while the systemic risk can not be eliminated due to its characteristics, can only rely on investor portfolio allocation bond funds, money funds and other asset allocation relative safety of low-risk species, through the different types of funds portfolio of products to minimize system risks the adverse impact of assets and losses.

Currently on the market launch of the "fund portfolio" products is the premise of guarding against market risks, according to the different needs of investors, designed to finance a new form of portfolio investment, in the high shock the market to choose their own fund portfolio, can effectively spread risk, but also through the combination of the conversion between funds to avoid fall in revenue-sharing.

4, are familiar with the basic operation of the fund of knowledge, ingenious low investment costs

Investment funds, in order to effectively save costs, shorten the time, investors need to have some prerequisite knowledge of the Fund's investments, including important trading rules, transaction costs, capital Daozhang time, and so on. At the same time, you can skillfully use the Fund-related businesses, such as online trading, conversion services, etc., to avoid risks and increase profitability.

Skills 1: online transactions cost-saving

Online trading by fund companies can enjoy a certain amount of fee concessions, equity funds generally purchase rates four fold; Secondly, online trading redemption of funds Daozhang faster Monetary Fund redemption of funds usually can be Daozhang T +1, significantly reduced the time cost of funds; In addition, the online trading 7 × 24 hours a day open, safe and convenient, ideal for busy people usually have time to go to the bank to buy the Fund's white-collar investors.

Skills 2: Using Convert to avoid the risk of

Fund investors should have a certain degree of risk awareness, configuration of assets should be in high-risk and low-risk species, be combined, a higher degree of risk exposure in the stock market, through the stock fund convertible-bond funds or money funds, in time to avoid downside risk, reduce asset losses; the same time, a strong trend in the market timing, bond funds can be converted into equity funds, fully share the opportunities for growth.
In addition, investors buy the fund must have some attention on the timing should be based on variety of different options to purchase the appropriate time; In addition, in addition to the IMF and other free subscription, redemption fee fund products, the other funds of the transaction collecting the relevant fees, and stock trading fees compared to much higher, therefore, recommends investors to invest in the Fund should minimize frequent operations, so as not to increase costs, affect earnings.

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