What are the advantages of stock funds?

What are the advantages of stock funds? Do other types of funds have advantages?

Equity funds mainly invest in stocks, with positions above 80%. The net value of the fund fluctuates greatly with the fluctuation of the market. Do you know the types of stock funds? The following are the advantages of equity funds brought by Bian Xiao for your reference. Let's have a look!

What are the advantages of stock funds?

Stock market participation: stock funds mainly invest in the stock market, and obtain share price growth and dividend income by buying stocks. Compared with other types of funds, the stock market has higher return potential, especially in the period of economic prosperity or the high growth stage of individual industries.

Excellent fund managers: Stock funds are usually managed by experienced fund managers, who have professional analytical skills and investment decision-making ability, and can choose valuable or potential stocks according to market trends and company fundamentals to obtain better investment returns.

Diversification: Stock funds diversify into multiple stocks to reduce the risk of specific stocks. By investing in different companies, industries and regions, we can effectively deal with the risks of individual stocks and realize the diversification of assets and risks.

Do other types of funds have their own advantages?

Bond fund: Compared with the stock market, the risk of bond market is lower, and bond fund can provide relatively stable income, which is suitable for conservative investors or investors who need stable income.

Hybrid funds: In terms of investment strategy, hybrid funds can adjust the proportion of stocks and bonds according to market conditions and the judgment of fund managers, thus balancing risks and benefits in different market environments.

Index funds: Index funds track specific market indexes and have the characteristics of low cost, high transparency and long-term stability. It provides investors with a simple way to participate in the market and enjoy the overall benefits of the market.

Real estate funds: Real estate funds can invest in real estate-related assets, such as commercial properties and houses, and enjoy the long-term appreciation and rental income of the real estate market.

What are the types of stock funds?

Stock funds can be divided into preferred stock funds and common stock funds according to the types of stocks. Preferred stock fund is a kind of stock fund with stable income and less risk. Its investment targets are mainly preferred shares issued by companies, and its income mainly comes from dividend income. Common stock funds aim at pursuing capital gains and long-term capital appreciation, and their risks are higher than those of preferred stock funds.

According to the degree of diversification of fund investment, equity funds can be divided into general common stock funds and specialized funds. The former refers to the diversification of fund assets into various ordinary stocks, while the latter refers to the investment of fund assets in some special industry stocks, which is risky but may have better potential returns.

According to the purpose of fund investment, stock funds can be divided into capital appreciation funds, growth funds funds and income funds. The main purpose of capital appreciation fund investment is to pursue rapid capital growth, thus bringing capital appreciation. This kind of fund is risky and has high returns.

It is risky for growth funds to invest in common stock with growth potential and income. Stock income funds invest in stocks issued by companies with stable development prospects, and pursue stable dividends and capital gains. This kind of fund has low risk and low income.

What are the investment risks of stock funds?

1, the fund scale is too large, the fund manager is difficult to operate, the pressure to prevent investors from redeeming is also great, and there are many cash positions, so sometimes it runs slower than the hybrid fund.

2. The stock market fluctuates greatly, and the timing of intervention is not appropriate. If you buy equity funds on the day when the market rises sharply, and then encounter stock market adjustment, the risk will be exposed.

3, frequent operation, the fund as a stock operation, because the transaction cost of the fund is more than the stock, there is the possibility of only earning the index and not making money.

4. The selected fund investment style is not the mainstream hot spot in the market.

Operation skills of stock funds

Tip 1: Choose a good fund manager.

Whether the fund manager can choose the right stock is very important. To investigate the past performance of fund managers, we should not only look at the investment ability of fund managers in bull market, but also observe the stock selection ability of fund managers in bear market and shock city.

By analyzing the fund managers' heavy positions and net value fluctuations, I found that the performance of some fund managers can outperform the market and the same industry for a long time. They have the same characteristics: they can form their own investment style according to the unpredictable market, and excellent fund managers basically insist on value and growth investment.

Generally speaking, it is necessary to analyze the past performance of the fund, inquire about the number of years the fund manager has managed the fund, pay special attention to the fund managers who have experienced the bear-bull cycle in the stock market, and then determine the investment style of the fund manager by analyzing the fund's heavy stocks, and finally screen out 3 to 5 more reliable fund managers.

Tip 2: The "three three four" of buying operation

At the level of buying operation, we should adhere to the principle of "three three four": that is, divide the funds invested in stock funds into three parts and buy three reliable stock funds: two of them each buy 30% of the total funds, and the more optimistic one only buys 40% of the total funds, thus constructing a fund portfolio.

In the specific purchase, it is necessary to combine the market situation and the level of the fund's net worth, and then gradually purchase it in three times, especially for funds with higher net worth. Although you are optimistic about fund managers, you still need to be cautious when buying.

Of course, if there is not much money, we should choose funds more carefully and concentrate on ammunition. But it's better to buy it in batches when you buy it. Don't worry too much.

Tip 3: the 80-year-old method

There is a principle that people rarely hear, called the "80-year-old method", that is, the proportion of high-risk assets in personal investable products should be less than 80 years old MINUS the age of investors.

If you are 27 years old, high-risk assets can be allocated to 53%. Of course, this is just a blunt indicator. How to allocate it depends on personal risk tendency.

However, this principle implies a concept that the younger you are, the stronger your ability to take risks. When you get older, your risk tolerance is weakened, so you need to reduce the allocation of high-risk assets.