GUANGZHOU (Fund China) – As the market volatility is getting greater, fund investment is getting more and more difficult. So, many investors become confused.

Yan Renming, the Customer Service Director of Guotai Asset Management Company gave investors three suggestions on making fund portfolio reasonable in the shock market. The three suggestions are as follow.

First is to change the concept of investment. The concept of “get-rich-quick” should be changed to “preserve and increase the value”. Investment mentality is very important. After all, the bull market will not come each year. Investors should set up a reasonable investment goal of their own, which is the base for stable investment.

Second is to be good at using the fund portfolio investment. Besides setting goals, investors should also know their own risk tolerance. People with different ages and backgrounds will have different tolerance for risk.

Third is to review the investment portfolio regularly and abandon the one with bad performance. Investors can take a period of time (at least six months or more) of the fund performance and the performance benchmarks for comparison so as to confirm whether it reaches their expectations, which also can be a criterion for screening funds.

Copyright Fund China 2009.

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