Although the amount of funds of each investor will be different, the number of funds held when investing in funds should not exceed 5, generally speaking, holding 3-5 is only a more appropriate allocation number.
1.Why configure 3-5 only?
If you want to make money through funds and minimize risk to the greatest extent, then the best way is to do fund matching and hedge investment risks by investing in multiple funds. If you only invest in 1 fund, it is likely that you will not be able to see obvious results for a relatively long period of time, or you will lose a lot when you encounter a drawdown.
If you invest in too many funds, you may not make money. The actual reason is very simple, so many funds in the sector rotation, will always encounter a fund fall, will lead to a limited overall return every day, unless it is encountered in the general rise of the market to obtain better returns. However, the general rise of A-shares can only be said to be too little, often it is a sector rotation or a general decline market.
On the one hand, it is easy to select high-quality funds and avoid a large number of duplicates of the stocks allocated by the purchased fund; On the other hand, this number of funds is easier to manage, if you buy more than 10 funds at once, then it is still more difficult in the process of management.
2.Whether you need to configure popular sections
Not all funds are allocated to popular sectors, be aware that sectors are rotated, and when the offensive of one sector ends and funds are transferred to another sector, there will be a certain degree of drawdown of funds in this sector.Then you can choose in this field, in fact, these four sectors are also relatively broad, you can also divide into smaller sectors, you can choose some funds with relatively low valuations to invest.
3.Individual fund allocation
There will be relatively big differences in everyone's investment ability and investment tendencies, so it will also be different when it comes to fund allocation. Specifically, it is divided into the following points：25% of the funds are allocated to the liquor consumption sector fund, with a maximum profit of 105%.25% of the funds are allocated to technology stock funds, which is now a technology era, and from the history of A-shares, the current large-cap index is still relatively low;20% of the funds are allocated to large-cap index funds, that is, CSI 300 funds, or the above reasons, in the long run, the upside of the broader market is still relatively sufficient;15% of the funds are allocated to a mixed fund in an industry;15% of the funds are allocated to bond funds, which are mainly used to hedge the risk in equity fund investments.
