Financial Management Q&A - How to allocate investment funds in the safest way

Financial Management Q&A - How to allocate investment funds in the safest way (Reporter Zhou Zhenyu) World News Network North American Chinese News, Chinese Business Information Question: Is there anything...

Financial Management Q&A - What is the safest way to allocate investment funds (Reporter Zhou Zhenyu) World News Network North American Chinese News, Chinese Business Information Question: Are there any investment funds that can be bought and "forgot", and then wait for the value to increase on their own? Answer: Investors are likely to experience another year of ups and downs in the stock market. The stock market is now very prosperous, attracting many investors to enter the market, but as long as there is a new situation in the federal government's finances, or the euro debt crisis further worsens, a rapid decline will be inevitable. The Wall Street Journal stated that in this market where both advance and retreat are possible, what investors want to know most is what to do. Should we enter the market on dips, or should we avoid this short trap? Are European stocks, which have fallen sharply, now relatively cheap, or will they be further discounted? Over the past year, the best investment has been bonds, but as bond yields continue to hit new lows, could now be the climax before the end of the feast? Currently, stock market investment returns last year were worse than holding cash. Basically, ordinary stock market investors have suffered losses, and only gold, bond and emerging market investors can still obtain above-average returns. For those who want to invest in mutual funds and have their portfolio managed by a fund manager, you can consider the following options: 1. Balanced funds. This type of fund is based on the simplest 60% stock investment and 40% bond investment. This type of fund will also make appropriate weight adjustments according to market changes. It is also the most traditional mutual fund and has fairly low fees, typically 0.26% per year. 2. Diversify your investment. Diversified investment funds themselves own a variety of assets, including international and small-cap stocks, as well as gold and bonds. Of course, this kind of fund, where the fund manager adjusts the investment portfolio according to changes in market conditions, has high fees. 3‧Adhere to the investment strategy. There is a type of fund called a perpetual fund, which buys gold, silver, Swiss francs, stocks and bonds in fixed proportions. The design purpose is to prevent the impact of inflation. Of course, performance will not be good during periods of low inflation. 4. Flexible investment funds. Unlike fixed strategies, investors can also select talented fund managers and invest independently according to their views. But everyone makes mistakes, and when fund managers look for investment opportunities, they will hold a higher proportion of cash, causing significant fluctuations in returns. Of course, there is no guarantee that any kind of fund will get better returns, but at least it will be better than hiding money under the mattress.