How to make a fixed investment in the fund is better?

Fixed investment, that is, average cost, is already a good investment method. The rest is what funds and fund combinations to choose.

1.

plan

Before you choose a fund, you should set your investment goals. Just like buying a car, you must first decide its main purpose [family travel, international travel, car travel in off-road racing, or just for the first-class appearance]. Therefore, make correct goals and plans, so as to know your risk tolerance, investment period and how to stick to investment goals; Perhaps the most important one is the investment period. The longer you have it, the greater the risk you can take.

2.

spill

You have made a plan, and then you should narrow down your options. For example, if your investment period is short, you should give up all funds classified as high risk.

After filtering out those unsuitable funds, the remaining options should be easier to handle and compare. If there are still too many choices, your plan may be too general, and you need a clearer investment goal [please go back to step 1].

3.

Comparison and contrast

Past performance is one of the most commonly used indicators to compare funds. However, if the past performance is used as an indicator, the future performance of the fund may be overestimated. The fund company has pointed out in the fund prospectus: "Past performance is not an indicator of future performance. 」

This does not mean that we should completely deny past performance. Past performance is one of the best indicators to measure the quality of a fund manager. However, don't just refer to past performance. We should also measure other non-quantitative factors, including:

Idaho (short for Idaho)

The investment philosophy of fund managers,

Two.

What is the investment market prospect? "News" may enlighten us.

)

Three.

Whether the fund matches your investment objectives, etc.

After the comparison, you should be able to further narrow your choices.

4. Build a portfolio

Of course, continuing to invest in a fund is a major decision. You must carefully study the quality of funds and understand the investment style of fund managers.

To ensure that you don't put all your eggs in one basket, you should spread your investment among multiple funds, including different markets and different asset classes. This can not only spread risks, but also make profits in many ways.

No one can accurately predict the performance of a fund in the next year. So we should pay more attention to news, including financial news and macroeconomic situation. For example, with the rapid development of China, the infrastructure will certainly develop rapidly, and the stocks or funds related to the materials needed for infrastructure will have great development prospects, such as building materials, cement, automobiles and machinery. Moreover, China has a large domestic market, so some domestic stocks or funds are favored.