Fund China: Provide Chinese funds for investment and related reference information.
Today ListSpecialFavoritesRSS

Recommendation: •  China Fund List •  China Fund Companies List
•  Is Fund required to bear the responsibility of propping up the market?

You are here: Fund China > Knowledge Fund > Six fund investment balance standards

Six fund investment balance standards

By Rex Chen
Published: 00:53, April 21st, 2008

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.

You Might Like:

  • Everbright Bank by private funds million threshold snatch the domestic high-end customers
  • Fund Splits, buy in or not?
  • Black Monday and Black Tuesday is circling over fund market
  • FOF another choice of investment
  • A neglected hole in Fund monitoring
  • QDII funds waiting for the coming year
  • Fund give a positive evaluation to stamp duty's reduction
  • Traded Funds to repay housing loans
  • Harvest Quality Enterprises Fund concentrated on sale
  • CPI may grow 5% in July
  • No Responses, Submit Comment

    You must be logged in to post a comment.

    View

    Hedge fund harvest in China fund market

    Total speaking, the hedge fund makes a quite good performance in the China fund market so far even including a part of funds fell down in November...

    QDII funds waiting for the coming year

    QDII funds waiting for the coming yearThere may be much upset, suspicious and expectant for the QDII funds in 2007 fund market....

    10 trends in the fund prospect

    The total fund scale amount will be 20 trillion more or less in 2020 in a neutrally forecast and the following 13 years' compound annual growth rate will reach 16%...

    Special

    Qualified Domestic Institutional Investor (QDII)
    China Southern Fund Management Co., one of the country's three largest fund companies, said it had won approval from regulators to invest clients' money in foreign financial markets. Detail...

    Recent

    Sponsored Links: