Characteristics of mutual funds

If you're tired of dealing with financial data all day or paying no attention to Kodak's bottom line or whether Nike or Reebok is better or worse, choosing an investment fund is an easy way.

Help those who want to invest in stocks and don't know how to analyze them, which is why mutual funds arise. All you need is cash to buy shares of the fund. Your money is invested in stocks by investors with a lot of other people's money. You want the fund to be managed by experts because you expect them to help you choose stocks correctly and buy and sell them in time.

In addition to having a professional fund manager to manage investments, mutual funds also have the advantage of investing in many stocks. That is, when you buy a fund, you suddenly become a shareholder of dozens or even hundreds of listed companies, whether you invest $50 million or $50 million, which is much less risky than buying a stock.

The general fund investment threshold is very low. The starting purchase amount is only $50 or $100. How much is the purchase amount? How often you buy is up to you. You can also choose to invest in a fixed amount of funds. The length of the interval is not important, but persistence is.

Some suggestions for investment funds

First, you can buy funds directly from fund companies or through stock brokers, but sometimes stock brokers may not represent the fund products you want.

Second, stock brokers should also be profitable, so sometimes they will focus on recommending their own products to you and persuading you to buy their own fund products, which may be their purpose but not your interest. Every time they recommend products to you, you need to think carefully. You can ask them to provide a list of all products. You may find similar products in nature to their recommendations, But the performance of fund products is much better.

Third, if you are a long-term investor, you don't need to consider whether to choose bond funds or hybrid funds. Your ultimate goal is stock funds. For most of the 20th century, stocks performed better than bonds. If you don't invest 100% in stock funds, you are deceiving yourself.

Fourth, it is difficult to choose the right fund to buy a good car, but the fund has historical performance as a reference. Unless you have visited many customers, you can't know which car is good, but you can judge the quality of the fund through the fund rating. The final analysis depends on the annual return on investment of the fund. However, When you choose a fund based on historical performance, first confirm whether the fund manager is still in office.

（Writer：Cily）