GUANGZHOU (Fund China) – In the shock market, fund nets will decrease as the market slumps. So, what can investors do to their fund portfolio? The most important thing is to change the investment concept to adapt the changing market. Investors can optimize their investment portfolios to deal with the situation. There are some suggestions as follow.

First is to invest dispersedly. Investors should first check the styles of their funds and the concentration degree to see if the entire asset has been invested in the equity funds, or the funds belong to the same companies. It is not good to concentration investment.
Second is to invest in bond funds and money funds. It can lower the risk to a certain extent. Don’t replace the funds with bad performance with the same kind funds, which cannot help to disperse the risk.

Third is to optimize investment strategy. It is the key of optimizing investment portfolio. To make optimal choices, investors should think of the new funds and old funds, net low funds and net high funds, one time investment and regular investment, cash dividends and dividend reinvestment. In the investment portfolio, the proportion of low risk funds should be increased such as bond funds and money funds. And the proportion of equity funds should be decreased appropriately. Besides, positions should be under control in 70 percent so that investors calmly invest.

Copyright Fund China 2009.

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