Before considering whether to invest in stocks or funds, first consider your risk tolerance, if you are afraid of losing your money every day, then it is better to keep this money in the bank.Whether it is a fund, a stock, or some other equity investment, we need to do a risk tolerance assessment before investing to determine whether we are suitable for this investment.
Stocks are a relatively risky investment - after all, stocks can go up or down by 10% in a day, while the range for stocks on the GEM and STI boards has risen to 20%. If you want to earn such an income, you can choose to speculate in stocks, but only if you can also afford the risk of losing that much.In comparison, the risk of funds is lower, on the one hand, equity funds reduce investment risks by investing in a basket of stocks, and on the other hand, there are fixed income funds.
If there is a corresponding risk tolerance, then the second thing to consider is the individual's ability to invest. Don't think that most people who speculate in stocks are profitable (in fact, the "two-eight rule" of the stock market has always existed), you can, or you have to have an objective judgment about yourself, people who do not have this investment ability do not choose to invest in stocks.
Relatively speaking, funds have much lower requirements for individual investment ability, and only need to choose a fund with excellent performance and hold it for a long time. It may not be possible to pick a champion base, but in the case of better market conditions, there are many funds with annualized returns of 30%, 40%, and 50%.What's more, in addition to equity funds, you can also choose fixed income funds for investment, although you can't get much income, but it's much better than losing money.
If the risk tolerance is relatively low and the investment ability is not so strong, then it is completely possible to choose some fixed income funds.
Of course, in addition to the fixed income fund can be invested, it is not that there are no other products to choose from. For example, PR1 and PR2 wealth management products with relatively low risk levels can be subscribed, although the return is not so high, generally between 3% and 5%, the risk is also not too high; Treasury bonds are also optional, with an annualized rate of 3.4% or more.
Whether you choose to speculate or invest in funds depends on your own judgement, based on your actual situation, whether you have sufficient risk tolerance and whether you have the appropriate investment capacity before deciding. Do not follow the trend blindly, if you do, it can lead to a loss of your own money and cause an irreparable situation. And when choosing an investment product, be sure to understand the nature of the product so that you can reap the benefits.
