Six fund investment balance standards
GUANGZHOU (Fund China) – With the financial activities of the Fund is continually deepening, the pursuit of calm investment in order to access to higher returns, has became a fund investment objectives chosen by the investors. However, to achieve this goal, the investors should aslo learn how to balance in the actual fund investment.
First, the balance of mind. After choosing to purchase the fund, the investors should not to disrupt the pace of life, and not to diverted life more precious time. Balance the mentality is a natural state of mind, it is a transcendent state.
Second, the balance of portfolio strategy. As a mature and rational investors, we aslo need to match and choose the funds between different funds products and different investment products in order to spread the risks and achieve the maximization of revenue.
Third, the balance between investment in time. Fund performance and stock market changes in the environment are inseparable. And the stock market has certain Symbol cyclical changes in the law changes. Investors do not study and analyse the changes of the securities market, will fail to maximize the return on investment. Short-term investments, frequent operation are more difficult to achieve the profits accumulated because of the higher cost of the Fund (recognition) purchase and redemption.
Fourth, the balance of investment income. Different market environment, a different realization of the proceeds, the investment results are totally different. Cash dividends for many investors is considered an acceptable income distribution practices. But in the bull market prices, dividend re-investment has greater advantages than cash dividends.
Fifth, the balance of investment risk. Investors in the understanding and evaluation of the Fund’s investment risk, they should care their own investment reality, correctly analyse and assesse the risk of the fund characteristics, neither overestimate the risks of stock funds, nor underestimate the risk of bond stock. Investors not only recognize the possibility of the risk, but also know to induct an effective mechanism to protect the security of the Fund’s principal investment(such as capital preservation funds).
Sixth, the balance of investment plans and objectives. Investors at different ages, in the face of the pursuit of life is very different. In order to prepare for children’s education,and pensions preparation, the investors should start investing in stocks funds or index funds, to make a long-term plan. In order to the recent marriage costs, tourism projects, and buying cars and houses, the investors should choose two to three years of the bond funds or short-term money market funds in order to achieve short-term earnings improvement, and to meet liquidity needs.
Copyright Fund China 2009.
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