Fund investment is a common investment method for investors when they first enter the market, and it has the advantages of being more stable, etc. However, there are long-term funds that make money themselves, but the investment returns for fund holders are not ideal. If you want to invest in funds to make money, you need to adopt a different ability and knowledge, so this article summarizes the three main ways to make money from the fund, in accordance with these three ways to invest in funds, will find it is not too difficult to make money.
Way 1: hold the immediate need for industry funds
The industry is mainly the long-term human needs of the industry, and demand will only increase, the industry's long-term development trend will not change, the recent mainly refers to such industries as medicine, consumer, science and technology, high-end manufacturing and other industries, the industry profits tend to be able to maintain a high level. By purchasing funds in sectors with high demand, you are actually earning money from economic growth, and as long as the country continues to develop, such funds will maintain a general upward trend. The advantage of just-in-sector funds is that you don't have to keep choosing to replace them or choosing when to replace them, you just need to hold them for a long time and earn money from the growth of corporate profits. But there are certain disadvantages to buying such funds, as such funds may have a small fluctuation once a year, if you hope to make money need to hold for a long time, short-term may exist to buy when located at a high level, its earnings will be greatly reduced, making it difficult to be satisfied.
Way 2: Investing in active funds
Active fund is a kind of fund that seeks to achieve performance beyond the market as the goal. The specific operation of investing in an active fund is to speak money to a professional fund manager to help you with allocation control. The main reason for investing in active funds is that the fund manager, through a strong research team, tends to be stronger than the average return of most people in the market. It is like a class of 30 people, the average score of the class is definitely not as high as the average score of the top 5, and the fund manager is the top students who help you make more profits when the market rises. But there are also disadvantages, active funds will be more volatile, investment mistakes may also lead to greater losses, and the basis for investing in active funds is a complete understanding of the fund manager and trust, but trust is very difficult to build.
Way 3: Scientific asset allocation
Asset allocation is a realistic investment philosophy that involves investing one's assets in different styles and types of funds, which is a more prudent way to invest one's entire investment capital. Because in a scientific portfolio of assets, in different stages, different types of funds always rise rapidly, in the long run will be in a state of steady rise, if your entire investment principal annual return of 10%, then 7 years time to achieve the doubling of assets. And its investment method can find a professional investment advisor for personalized allocation, taking into account each person's investment objectives, expected returns and risk tolerance, to form a personalized asset allocation plan. However, the disadvantage is the low return.
In summary, in the long run, the above three fund investment methods can earn money, but each has its own advantages and disadvantages, investors can choose the most suitable for their own investment funds according to their own money-making needs, economic situation and contacts.
