From: http://www.fundcn.org

In investor education, some articles in the analysis of different groups should adopt a different investment strategy, he said, the elderly because older, less energy, we should choose a low-risk funds, such as bond funds and the IMF.

I think we do not have to put older people on the most risk-free affordability among the crowd. For the elderly can also encourage the purchase of its equity funds. This is because, compared to the stock, stock-fund itself is a low-risk species. Fund managers in the operation of the stock-based fund, has a full portfolio of investment not only in different plates, is the same plate were also invest more stocks, and some of the allocation of a certain number of bonds. Fund itself is a very strong ability to resist risks. Moreover, fund managers, professional skills, the Fund’s team, have this product in the Fund dropped to the controllable risk and lower limits. Stock investment fund risk is not large, long-term investments more revenue is certain.

Secondly, the elderly are often stronger ability to absorb risk. The elderly because they work for a lifetime, we have a rich experience of life, in their past years, may encounter many difficulties and obstacles, going through many rigorous tests and tortured, they are very now, Now get some investment, the risk must be endured. And the elderly than young people more mature and rational, so that they have a greater risk identification, the ability to take risks.

Moreover, the elderly may not be without energy. Most elderly people have retired, they leave their previous peak of the work, energy more easily than in the past, can be set aside time to study the stock market, research funds. In this sense, the stock market and funds for the young people to understand is not necessarily worse than that.

Of course what should dialectical point of view, some of the older culture of low lifetime, save a bit of money to old age, age or over, and they of course have nothing to risk-bearing capacity. For this group of old people who can not enter the stock market, and give the money to the bank or to buy the bonds.

Copyright Fund China 2009.

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