How long is the general cycle of fund investment? We all know that investing in different funds has different risks and returns, and the optimal length of time for investing in different funds is also different. How long is the investment cycle of the fund generally suitable? Here are the best investment cycles of the three funds.
Investment cycle of monetary fund:
Money funds can generally be used whenever they are taken, such as Yu'e Bao, which can basically be received within two hours. Monetary funds will not lose money basically. We can use them as a substitute for cash, and hold them on a daily basis.
Investment cycle of bond fund:
The yield of bond funds is relatively high, but may decline in the short term. For bond funds, we are generally suitable to hold them for more than half a year. Bond funds can be seen as a substitute for time deposits, and are more suitable for managing the medium-term length of funds, that is, for managing funds between half a year and three years.
Investment cycle of stock fund:
Although the stock fund can be purchased and redeemed at any time in operation, the shorter the holding time, the greater the risk, and it may also experience short-term decline, causing psychological panic, so the stock fund is suitable for long-term holding. On average, it is suitable for more than 3-5 years. Prepare for long-term investment before investment, which is more suitable for funds that will not be used in three years. Investing in stock funds does not necessarily require more than three years of investment time, sometimes shorter than three years, sometimes longer than three years. For stock funds, the longer they hold, the lower the risk of loss and the higher the expected return.
The stock fund has high returns and risks, and can fight against inflation. It is our first choice for investment, but it needs a long investment cycle, and we need to use idle money that we have not used for a long time to invest. The cycle of bond fund return risk investment is medium, which can basically keep pace with inflation. Money funds can not defeat inflation, and the yield is low, but the investment risk is low and the investment cycle is short. We should fully understand the characteristics of investment funds when we actually invest in order to correctly deal with questions arising from investment.
