What Are the Different Asset Protection Strategies?

Strategic asset allocation is based on the investor's risk tolerance to make a prior and overall plan and arrangement for individual assets. For example, if an investor invests only in stocks and bonds, what is the approximate ratio of the two types of assets. The tactical asset allocation is based on the basic determination of the proportion of large-scale assets, going deeper into the specific assets, and carrying out more comprehensive detailed construction. Make timely adjustments.

Strategic asset allocation

Right!

1. Risk tolerance for investors and

The trade-off between risk and return of strategic asset allocation can be divided into three major types:

(1) High-yield and high-risk type. With this configuration of mutual funds, the investment objective is to focus on capital appreciation, so that investors' funds can achieve a relatively large increase in a certain period of time. Such funds are mainly aggressive growth funds. This type of fund mostly invests in stocks, and often invests in emerging industries and initial corporate stocks. Such funds have high returns, but they are also very risky.

(2) Long-term growth and low risk. The investment objective of the fund using this allocation strategy is to focus on long-term investment so that investors can obtain relatively stable investment returns and avoid investment risks. This type of fund is mainly balanced funds and various bond funds. It mainly invests in bonds and preferred stocks with higher fixed income to ensure the safety of investors' principal and obtain regular income, so as to achieve long-term growth of principal and income.

(3) General risk and return balance type. The investment objective of the fund using this allocation strategy is to adjust the investment portfolio in a timely manner in accordance with market changes to achieve a balance between returns and risks, so that investors can regularly obtain reasonable returns and convert part of the returns into fund reinvestment. This type of fund is mainly a flexible portfolio fund. Its investment object is not fixed and relatively flexible. It often focuses on investing in certain securities over a period of time.