What is a portfolio fund? How should I choose a portfolio fund?
I, Portfolio Funds
Fund portfolio is a kind of fund as the investment object, through grasping the opportunity of broad asset allocation, screening out excellent funds for investment, and timely adjusting and optimizing the portfolio according to the market fluctuation. With professional investment institutions and a scientific fund analysis and evaluation system, fund portfolios can more effectively identify the advantageous varieties from a wide variety of funds with uneven profitability, thus maximizing investors' ability to avoid risks and obtain returns. In the capital markets of developed countries, fund portfolios have a history of several decades and are a very mature way of investment.
II, Selection of portfolio funds
1, Building a core portfolio of funds
Rational investment is the first step to successful financial management. In a volatile market, it is increasingly difficult to select funds that can generate returns from over 300 funds. Effectively selecting a portfolio of allocations not only diversifies risk, but may also yield good returns. Financial experts say that when building a fund allocation portfolio, it is best to have a core portfolio. This core portfolio is decisive in achieving the investor's ultimate investment objectives. He says this core portfolio can account for 60-80% of the overall fund portfolio.
The core funds should preferably be funds with a consistent performance and distinctive characteristics. In particular, funds that specialize in a particular sector, such as services or resources.
In addition, for the portfolio is not to buy more funds is doing portfolio, financial experts said, the construction of the core portfolio of funds is the most important. The current bull market situation, partial equity funds are certainly the main investment varieties in the core portfolio, and in order to diversify risk, it may also be worthwhile to buy some bonds or currency funds in addition to the core portfolio.
When choosing a core portfolio of funds, it is best to choose a different underlying fund for investment in a pari-mutuel fund. Investors should research the fund's equity positions, top 10 long positions, etc. before investing. Funders who are particularly speculative at the same time can take a heavy allocation to funds in sectors they are bullish on. It is best to choose 3-5 fund products from 2-3 excellent fund companies, and it is good to match old and new funds.
2, One-time investment and fixed investment phase combination
In addition to building a core portfolio of funds, investing in funds in a way that also requires attention to a combination of one-time investments and fixed-term investments. Financial experts suggest that when making an investment portfolio, the number of funds is too small, which can easily cause dramatic fluctuations in the portfolio, affecting the stability of returns and preventing effective risk diversification; the number of funds is too large, which will not improve the efficiency of risk diversification, and the safety of the fund portfolio will not increase due to the increase in the number of funds.
