GUANGZHOU (Fund China) – Recently, experts have given some suggestions to fund investors for buying funds. There are 7 principles as follow.

First is to invest dispersedly. Don’t put all eggs into one basket. So, investors can invest in money funds, bond funds, dividend funds, index funds, equity funds. In this way, investors can lower the systematic risk of the market.

Second is to choose suitable funds. Different funds have different styles. Some are positive while others are stable. Investors should not choose funds according to the rank list. Instead, they should choose funds in accordance with their characteristics.

Third is to analyze the texture. Investors should consider the corporate management structure, investment style, and team strength and product revenue.

Fourth is objectively face up to the price. All the funds’ assets are relatively high and low. Don’t misunderstand that low price funds have a large space to appreciate. Also, it doesn’t mean that high price funds’ appreciation will be slow.

Fifth is rational allocation. Old funds have more experience than new funds. And their operation is more stable and formal.

Sixth is to buy funds in different time. As well as stocks, funds also have risk. Once the market falls, it will be hard to lower the average costs of the one- time investment. So, it is better to invest regularly so as to lower the average costs.

Seventh is to be long-term holders. Funds are not stocks and they should not be short-term operated. Frequent redemption will increase costs.

Copyright Fund China 2009.

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