Every year, new funds are listed, but we lack experience, so when choosing a new fund, we don't know how to choose a suitable fund, so among the many funds, how do we choose the right fund for ourselves?

Investment direction of the fund

When buying a new fund, you must understand the investment direction of the fund and know where the funds are going.The investment direction of funds is very wide, more common including money market, bond market, stocks, gold, and even some funds are investment funds, different investment fund risks are also different, for example, the investment risk of funds invested in the bond market and money market is relatively low, and the fund investment risk in the stock and gold market is relatively high.

After understanding the big investment direction, you also need to understand the small investment direction, such as so many types of stocks, you need to know what type of stocks you buy the fund is mainly invested in, whether it is technology stocks, consumer stocks or semiconductors, etc., whether it is growth stocks or blue chips, etc.,

Because everyone's risk tolerance is different, after knowing the investment direction of the fund, you can know to a certain extent whether the fund is suitable for you, and whether the risk is within your tolerance.

Market heat

There are many people who do not recommend buying new funds, the main reason is that the issuance of new funds is often issued when the market is relatively hot, and at this time most stock prices are at a high level, and the investment risk is relatively high, but this does not mean that buying new funds cannot make money, but the risk to bear is slightly higher.When buying a new fund, you must pay attention to the market situation, the more crazy the stock market, then you must worry when buying a fund, it is easy to be trapped at a high level; And if it is a normal market or a volatile market, there is still a great chance to make money.Therefore, when buying a new fund, if you find that the market is very hot, then try not to buy a new fund at this time, or the position should not be too high.

When buying a newly listed fund, you must first understand the investment direction and risk of the fund, and buy a fund with a risk within your tolerance; The second is to understand the market heat, if a fund has too many buyers, then do not choose it, or buy less

We must compare carefully the funds available in the market when choosing the right fund for us, because there are so many funds in the market that although it will give us more choices, it will more often than not result in us not knowing how to choose the right fund for us, so we must look carefully before choosing to avoid surprises.

（Writer：Ganny）