The fixed ratio method, as the name suggests, refers to the allocation of funds by investors to different investment varieties according to a fixed proportion. The core idea of this strategy is to maintain the stability of the portfolio and respond to market risk by adjusting the ratio of different assets.
First of all, the fixed-ratio investment method divides the funds into two parts: one is protective investments, such as bonds and deposits, etc.;The other part is risky investments, such as ** and so on. Investors can determine the proportion of different assets according to their own risk tolerance and investment goals.
Take an investor as an example, let's say he has $100,000 in capital. He decided to allocate the funds to bonds and ** in a 50% proportion. Therefore, he bought bonds worth $50,000 and ** worth $50,000.
As the market changes, **start**. Investors found that his ** value had risen from 50,000 yuan to 60,000 yuan. In order to maintain the balance of the portfolio, he needs to dispose of the 10,000 yuan of **, and in order to keep the initial investment ratio unchanged, the investor needs to sell 5,000 yuan worth of ** and use the 5,000 yuan to buy bonds. In this way, the proportion of bonds and ** in his portfolio remains at 50%.
Similarly, if *** investors also need to sell some bonds to keep the portfolio balanced.
The advantage of the fixed-ratio investment method is that it reduces investment risk. By adjusting the proportions of different assets, investors can cope with market risks to a certain extent. In addition, the fixed proportion investment method is also easy to operate and has a large safety factor. Even if the investment loses a lot, it will make up for the loss because of the stable yield of the bond.
However, the fixed-ratio approach also has its drawbacks. Once the investment ratio has been determined, the investor needs to constantly adjust the portfolio, which increases the transaction cost and time cost. In addition, if market conditions change, investors may need to readjust their investment ratios, which can also increase investment risk.
In conclusion, the fixed-ratio investment method is a balanced investment strategy, which can not only reduce investment risks, but also deal with market risks to a certain extent. However, it should be noted that any investment strategy has its advantages and disadvantages, and investors need to choose the right investment strategy for themselves according to their investment goals and risk tolerance.
In practice, investors need to pay close attention to market dynamics and adjust their portfolios in a timely manner. At the same time, investors also need to develop a suitable investment strategy according to their own risk tolerance and investment goals. Only in this way can we maintain stable investment returns in the fierce market competition.
If you have more questions, please leave a message in the comment area or communicate with me in a private messageThe following is my summary of the current rate situation in the market for your reference.