No time to research stocks? Set up your funds this way to make steady profits

What is the biggest frustration for office workers? — Not knowing where to invest their money, researching stocks is too brain-consuming, and putting money in the bank can’t keep up with inflation. Actually, it doesn’t have to be so complicated; funds are designed for people like you.

What exactly are funds?

Simply put, a fund is a group of people pooling their money together, managed by professional fund managers to invest. You don’t need to spend effort researching the market; they handle it for you, sharing profits when things go well, and bearing losses together when they don’t. This model is officially called a “securities investment fund,” issued by banks or brokerages, with fund managers responsible for investment strategies and institutions like banks safeguarding the funds.

Why do so many people choose funds? 5 major advantages tell you

1. Professionals handle it, reliable
Funds are managed by teams with deep market experience who study market trends all day, making smarter decisions than retail investors.

2. Diversify your eggs in one basket
Funds invest across stocks, bonds, commodities, and other assets, so even if one investment underperforms, others can support the overall, greatly reducing risk.

3. Buy or sell anytime, high liquidity
Unlike real estate, which is hard to liquidate, funds can be bought or sold at any time, allowing flexible fund management.

4. Play with just 3000 yuan, low threshold
No need for huge capital; small investments can get you in the game.

5. Stable periodic returns, suitable for lazy investors
No need to watch the market every day; medium to long-term investing can yield relatively stable returns.

How are funds classified? Which type suits you best?

Based on investment focus, funds are mainly divided into 5 categories:

Money Market Funds — The safest and most conservative
Invest in short-term bonds and commercial paper, with the lowest risk and good liquidity. But the downside is lower long-term returns, suitable for risk-averse investors or idle funds needing quick cash.

Bond Funds — Stable with growth potential
Invest in government bonds, treasury bonds, corporate bonds, offering stable fixed income with slightly higher risk and returns than money market funds. Bond funds investing in government bonds are the least risky. The downside is that longer investment periods are needed to see significant returns.

Stock Funds — High return, high risk
Invest directly in stocks, with large fluctuations, potentially high gains or losses. Suitable for those who can tolerate risk and have a longer investment horizon.

Index Funds — Track major indices
Buy all or some component stocks of an index, such as CSI 300, NASDAQ 100, etc. Good liquidity, relatively balanced risk, and ETF funds are a common form.

Mixed Funds — Balanced risk and return
Invest in a mix of stocks, bonds, and other assets, with risk and returns between bond and stock funds, suitable for most ordinary investors.

How much does it cost to buy a fund? Fee overview

From purchase to redemption, you’ll pay these fees:

Purchase fee: Charged when buying, 1.5% for bond funds, 3% for stock funds, some channels offer discounts.

Redemption fee: Most domestic funds have no redemption fee. But if bought via bank, you might pay trust management fees, deducted from NAV at redemption, about 0.2% per year.

Management fee: Charged by the fund company, generally 1%~2.5% annually. Different fund types have different rates; ETF management fees are relatively lower.

Custodian fee: Charged by banks or custodians, about 0.2% per year, for safekeeping the funds.

How to allocate your fund portfolio for steady gains?

Knowing fund types isn’t enough; key is how to allocate your portfolio. Based on your risk tolerance and investment horizon, the most reasonable allocations are:

Aggressive investors (can handle volatility)
Stocks 50% + Bonds 25% + Money Market 15% + Others 10%
This pursuit of higher returns involves larger fluctuations and requires mental preparedness.

Moderate investors (want to balance risk and return)
Stocks 35% + Bonds 40% + Money Market 20% + Others 5%
This is the optimal choice for most office workers, offering decent returns with acceptable volatility.

Conservative investors (most afraid of losing money)
Stocks 20% + Bonds 20% + Money Market 60%
Put most funds into the safest places, with lower returns but better sleep quality.

Where to buy funds?

Through banks: Major commercial banks sell funds, but fees are relatively high, and service is more traditional.

Fund platforms: Professional fund sales platforms with a wide selection, possibly offering discounts on fees.

Through brokerages: Securities firms also sell funds; if you already have a stock account, you can buy directly within your account.

Final advice

If you’re a busy office worker with limited time and no deep investment knowledge, funds are indeed a good choice. The key points are:

• Choose suitable fund combinations based on your risk tolerance
• Regularly review your portfolio to prevent over-concentration in one fund type
• Invest with a long-term perspective, don’t expect overnight riches
• Keep costs low, don’t let fees eat into your returns

Starting from just 3000 yuan, easy to get started, with professionals managing your wealth—perhaps this is the investment approach that suits you best.