Believe it or not, by today, you should have received your year-end bonus, unless your employer is so stingy as to not give you a year-end bonus.
For those who are already accustomed to playing in the stock market, having a sum of money on hand and not investing it always makes one feel uneasy. Even though the current stock market situation is indeed far from satisfactory, one still wants to find a way to convert the money into stocks or funds. Therefore, we will invite financial experts to help you strategize with your year-end bonus, to see how to invest it without "neglecting" this bonus.
Look at Age
Choose the Asset Allocation Ratio
Although the current stock market situation is "chilling," most institutional investors still believe that the A-share market may achieve some positive returns this year. However, the risks that investors will bear will be much greater than before. Experts suggest that aggressive investors can still maintain an appropriate position in A-share stocks or equity funds according to their personal situations, but they should also appropriately increase the allocation of low-risk products such as bond funds to reduce the overall fluctuation of their personal asset portfolio.
According to the introduction, there is a simple investment principle in mature overseas markets: the investor's age corresponds to the proportion of stable products that should be allocated in their personal assets. For a 30-year-old young person who pursues growth, the proportion of high-risk products in their personal asset allocation can reach 70%, but they should still reserve 30% for stable products such as savings, bonds, and bond funds; for a 70-year-old retiree who seeks stability and peace, in a reasonable asset allocation, the investment in high-risk products should not exceed 30%, and more than 70% of the money should be invested in low-risk stable products.
If you are 30 years old this year and your year-end bonus is 30,000 yuan, it is suggested that you invest around 10,000 yuan in stable-income products like bond funds, and the remaining 20,000 yuan can be invested in stocks or equity funds, which offer relatively higher returns and risks.
Look at Data Display
Choose Quality Funds or Stocks, or Buy Gold
After determining the asset allocation, the next step is to choose specific stocks and funds. Understanding some data is crucial in this selection process. Currently, the rankings of fund companies' investment capabilities in 2007 have been released. Market third-party statistical institutions such as WIND Information, Galaxy Securities, Morningstar, and Lipper provide important references through most of their statistical data. Those funds that perform well when the stock market is good and are relatively resistant to falling prices when the market is poor are undoubtedly the preferred choice for investors. Additionally, experts suggest that while choosing fund products, investors should also pay attention to the fund company, trying to select products from those companies with strong shareholder strength, standardized corporate governance, and strong overall investment capabilities.
Experts are generally cautious about the stock market situation this year. Therefore, when choosing individual stocks, investors need to carefully understand the detailed situation of each stock. Generally speaking, during a sluggish stock market, large-cap blue-chip stocks tend to be more resistant to price declines. Moreover, the performance of closed-end funds might also be a highlight in 2008.
Look at Income Situation
Choose Fixed Amount Fund Investment
Of course, even if your year-end bonus is small or non-existent, you still need to invest. Financial planners suggest that for salaried employees receiving fixed salaries, individuals with special funding needs at a certain point in the future, and those who do not want to take on too much investment risk, investing in open-end funds via a regular fixed-amount method is a good choice.
Many experts believe that in the current market environment, investors should pay attention to maintaining a reasonable asset allocation. Configuring some medium to low-risk funds with stable investment characteristics in the fund portfolio is a good way to reduce the overall risk of the portfolio. Furthermore, long-term continuous regular fixed-amount investments can help investors avoid some risks brought by fluctuations in net asset value and achieve long-term steady appreciation. On one hand, regular fixed-amount investments can lower risks. Since regular fixed-amount investments involve phased absorption, not only can investors buy more funds at lower prices when the net asset value falls, but they can also reduce losses in existing investments. On the other hand, the merit of regular fixed-amount investments lies in its "discipline," avoiding investment mistakes caused by blindly chasing popular funds.