What are the advantages of a fund of funds?

**The advantages of the combination are as follows:

1. Diversify investment risks.

**Portfolio is a package**, which contains different categories**, compared to investing in a single **, **portfolio can play a very good purpose of diversification, so that the eggs are basketed. If you only prefer a certain category, when the market changes, if there are no other varieties to balance, it will often bring a lot of investment losses because of concentrated holdings, and the way of combining can diversify investment risks by investing in different styles and industries, and obtain market excess returns through reasonable allocation.

2. Balance and re-optimization.

**After the portfolio is constructed, it does not mean that everything is fine, but also needs to be continuously optimized in the process of operation according to the changes in the market, timely adjustment of the portfolio, replacement of long-term poor performance of the target, according to the risk situation of the market, adjustment**, increase the proportion of equity investment when the market is near, when the market is sluggish, moderately reduce the proportion of equity investment, so as to control the risk of the portfolio, this series of operations need to have professional ability and market sense of smell of the portfolio manager to operate.

3. Investment is more specialized.

The construction of the portfolio is carried out by a very good manager in the company as the manager of the portfolio, and the manager is the best among the managers, and the manager selects a package from the whole market according to the risk and return characteristics of the portfolio through his own professional level, and the manager has a stronger ability to select, grasp the market information in a more timely manner, and the investment environment is better, so the portfolio is more reasonable than that of ordinary investors.

**Combination can be understood as "basket**", which is the situation of combining several ** together.

It should be noted here that **combination and FOF** are two different things, generally speaking, **combination is mostly equipped with its own **company**, so the subscription of its own ** only charges a handling fee; In addition, it will be more flexible in terms of holding and holding; **The portfolio can be for all kinds of investors, and FOF is mainly for social security, insurance companies and more moderate investors.

The reason why you want to buy ** combo is also very simple. **Combination is like forming a team, each member of the team has their own advantages, through the cooperation between members to complement each other, not only to form an organic whole, but also to play a role in stabilizing investment returns and reducing investment risks.

**The advantages of portfolio investment are mainly reflected in its risk, profitability and other aspects. For example, portfolio investing can diversify risk and reduce its riskiness. Compared with the one-time one, the profitability of the combination is relatively stable.

After the construction of the first portfolio, it does not mean once and for all, but it is necessary to carry out long-term tracking and monitoring, and dynamically adjust the portfolio according to market trends and manager management levels, such as moderately increasing the allocation of **type ** during the bull market, and moderately increasing the proportion of bond type and currency type during the bear market.

In the process of dynamic adjustment of the ** portfolio, the transaction fee will be increased due to frequent position adjustment.

Because there will be a redemption fee for selling ** in the portfolio, and the redemption rate is related to the length of time to hold **, if the holding time is less than 7 days, the redemption rate of many ** is even higher. In the same way, frequent rebalancing also means frequent redemption, which will greatly increase transaction costs.

Extended information: The purpose of investment is to pursue better returns, and the combination is based on the research and judgment of the macro situation, and the combination of different types and styles is carried out.

The overall return of the portfolio is directly related to the type chosen. For example, in a bull market, if the ** type and mixed ** type in the portfolio are relatively high, you will get a good return. In recent years, among the leading white horse stocks that are "big is beautiful", if you choose the blue-chip style, you will also get considerable excess returns.

That is to say, in a bull market, the combination can increase the proportion of the bond type and the currency type, and appropriately reduce the proportion of the bond type and the currency type; In a bear market, you can appropriately increase the bond type and currency type in the portfolio, and reduce the allocation of the bond type. However, the general trend is accurately judged, and the requirements for investors are extremely high, if because of the instability of investment sentiment, when encountering extreme **, it is easy to blindly adjust positions because of judgment errors, and miss ****.

The portfolio will not miss some good investment opportunities or sectors, with losses and earns, and generally guarantees a stable income.

Portfolio investment has always been an important part of the investment market, and it is also the most important advantage and feature of investment, which can help investors choose investment products with different risks and maximize the expected returns under the risk conditions of their choice. What are the advantages of portfolio investment? Let's talk about it today.

Portfolio Investments

A portfolio is a collection of **, bonds, financial derivatives, etc. held by investors or financial institutions. The aim is to diversify risk.

Meaning of portfolio investment

1. The first level is the combination between various assets such as **, bonds and cash, that is, how to distribute proportions among different assets;

2. The second level is the combination of bonds and bonds, that is, which varieties of bonds and which varieties of bonds are selected in the same asset class and what are their respective weights.

Advantages of portfolio investment

1. One of the major advantages of investment is that Kumino Iwai investment diversifies risks, usually a ** will invest in dozens or even hundreds**, and our purchase is equivalent to investing in a basket with very little money**.

2. Portfolio investment diversifies risks through professional asset allocation to achieve higher returns with lower risk.

3. The investment threshold is low, and you can gather funds to invest in investment products with high thresholds, and the portfolio can obtain ** products with different risk levels through different weight ratios, giving all kinds of investors more opportunities to choose.

4. Portfolio investment can choose the same kind or different types, and under the operation of professionals, you can obtain benefits, that is, you have the professionalism of selection.

Song Youyu has said so much about the advantages of ** portfolio investment, I hope you can weigh the pros and cons and help the investment. Warm reminder, financial management is risky, investment needs to be cautious.

Most investors will not only hold a **, but they will definitely buy one type of ** because they do not plan to buy indiscriminately, with the same rise and fall, without achieving the purpose of diversification, or holding a lot of ** at the same time to cause confusion in management.

It is very necessary to build a combination in a planned way. There are three core elements to consider in building an effective portfolio: correlation, volatility, and profitability.

One ** fluctuates greatly under the influence of certain factors, and these factors have little effect on the other **, two ** are added, the volatility is averaged, weakened, the lower the correlation, the better the effect of diversification, we can test the correlation from different **type, different investment directions of assets, different **companies, and different **managers.

For example, if I choose the **** of **company A and **the bond of **company B**, and the currency of **company C**, such a combination can effectively reduce the risk of short-term fluctuations, but at the same time, it will also reduce the total value of long-term returns.

To build a portfolio is to treat the portfolio as a whole, the portfolio is not immutable, and needs to be adjusted in a timely manner according to the market situation, including the adjustment and replacement of the market, etc., before making adjustments, we must consider that there is a suitable replacement object, and the entire portfolio can reach a balanced state after the adjustment is completed. Building a first-class combination is not to go to the buffet and choose what you see, but to pay attention to a balanced match, so that you are full, well-fed and nutritious.

Generally speaking, a portfolio of 4-7 stocks** is more suitable. There is some room for adjustment, and it is not complicated to manage.

Now there are many ** investment advisory portfolios on the market, which are to help you match a ** portfolio through professional management, as long as you follow the ** sell.

1.First of all, we must choose the type of **, and secondly, don't buy too much of the same type, because it is difficult to diversify the risk if you buy too much of the same type.

2.Pick a good manager. Look at the manager's past performance and experience, background information.

3.Look at the performance ranking of **. Generally speaking, it is better to look at the ranking and the performance ranking of the past year and three to five years, and try to choose the top 25% of the investment in the five, three and one year.

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zip, knowledge summary of the elementary course, notes of the advanced course, Q&A of the advanced course, how to choose a new one, understand the mystery of the mixed type, etc.

Combining** is to combine several** together.

There are two main types of combined** products:

One is to form a portfolio according to a certain investment objective and strategic selection, which is not registered, and the proportion and proportion of the portfolio can be adjusted according to the market, the customer's own situation and the original investment criteria.

The second is equivalent to the issuance of a new **, this kind of combination product has been designed in advance with a stable or aggressive or conservative style of the album combination. In this kind of product, the weight of the ** selected in the combination and its ratio is basically not adjusted. After the birth of the concept of life cycle, this kind of FOF products have been recognized by the market.