Investment Skills for Mutual Funds in a Volatile Market

by rkcms on 2007-10-29 12:00:01

Recently, the Shanghai Composite Index has been fluctuating dramatically between 5500 and 6000 points. Many fund investors have started to become worried. Meanwhile, some fund managers' view that the market is experiencing a structural bubble has made many investors restless and prompted them to consider exiting the market. According to investment theory, when the market falls, stock prices become cheaper and it becomes more profitable for investors to buy stocks. However, when stock prices fall, most investors rush to exit equity funds; and when the market rises, they start to enter. In order to invest in the recent chaotic market, you may want to pay attention to the following investment techniques.