Compiler: http://www.fundcn.org

Chengdu, the city had that many offices, the number of office Lane crazy busy white-collar workers, These as well as the number of white-collar workers have to eat what their noon troubled. “Oh, you said you ate?” Canteens too bad, too hot to eat out, often struggling, Charolais and colleagues will always choose with a take-away outlets. As my colleagues have said, “Although higher repeatability, but at least on the nutritional mix of relatively reasonable.”

Indeed, with the development of social life, we choose the growing space, for instance, the catering above, not only the pursuit of taste more healthy. In fact, the investments of the Fund on the same, although different people may have different preferences fund types, But more and more people began to pay attention to their overall investment in the health of the degree.

How to let your fund investment “menu” more healthy? Professor Morgan Charolais recommendations are : what might portfolio.

Investment in securities, the investment portfolio on a theory that the species composition of investment inside the correlation between the smaller, overall investment portfolio with lower risk level. Therefore, if this theory to investment funds through different types of fund products, through a certain proportion of mix, portfolio investment, can further optimize the overall investment return and risk level. The current market fund of funds products, more and more abundant and of the differences. This has to a certain extent, to provide investors with a portfolio of product base.

Fund currently is increasingly out of the predicament similar style, risk management, strategic stocks, that the fund performance and volatility characteristics, it shows a different style of the fund formation. For example, stock-fund risk / return higher degree assets under management of the cycle and the risk bearing capacity of selective investments to ensure that the composition of the higher income; and the allocation of Fund which combines the advantages of flexible configuration, shares the characteristics of both debt and lower risk, relatively stable income; Money Market Fund / bond funds greater mobility and low income but more stable. Thus, the use of different varieties Fund portfolio, on the one hand, to spread the risks, on the other hand, reasonable for the management of funds, thus the entire investment fund health “menu.”

Professor Morgan Dictionary Fund : Investment Portfolio Theory

Modern portfolio theory is a modern financial theory and the theory of investment, is the American economist Markowits founded in 1952. major study in how investors weigh the benefits and risks based on the expected utility maximization. Modern Portfolio Theory is the principal investment risks against defuse the possibility. “Do not put all the eggs in one basket” diversified investment portfolio is the best analogy. This has become a modern financial and investment world of a truth.

But market risk there are two : systematic risk and non-systematic risk. Through portfolio investment, and reduce the spread of non-systemic risk, ie, the individual risks; And systematic risk is not reduced.

Copyright Fund China 2008.

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