Is it suitable to buy funds during the epidemic? What funds are good to buy during the epidemic?

We all know that funds are a common investment project. Many people will buy funds for investment, especially office workers. Due to the impact of the new coronavirus, the capital investment market has also been affected to a certain extent. So is it suitable to buy funds during the epidemic? Let's take a closer look!

Is it suitable to buy funds during the epidemic?

It depends on your personal situation. If you have extra money for investment, you can buy some funds, but you must choose the right investment target.

Entering 2020, under the influence of the spread of the COVID-19 pandemic, global market volatility has intensified, and the start of the Year of the Rat in the investment market is not optimistic. Not to mention the stock market, which has plummeted and then rebounded, all I dare to do now is buy some funds and make regular investments.

Let's go back to the outbreak of SARS in 2003. At the beginning of the epidemic, the mainland economy was the first to be hit. The consumer sector of "eating, drinking, living, traveling, and travel" was the hardest hit. Retail, real estate, consumer services, food, media and other sectors fell into a mess. However, what's interesting is that some sectors were almost unaffected during the entire epidemic. Software and services, biopharmaceuticals, durable consumer goods and clothing, semiconductors, etc. are "not sensitive" to the epidemic. Therefore, it is not impossible to buy funds for investment during the epidemic. The key is to choose the right product.

What funds are good to buy during the epidemic?

If the market falls due to panic caused by the epidemic, it is precisely a golden investment window for investors to get in at a low level.

It is recommended that you actively seek sectors and industries that will benefit from economic transformation in the long term. You continue to be optimistic about consumption and technology in the medium and long term, but consumption will be more affected in the short term, while technology remains an important structural theme in the short term.

We are optimistic about industries such as electric vehicles, 5G, consumer electronics, semiconductors, and media. The long-term investment value of consumption is still very obvious. When the epidemic situation gradually becomes clear, allocation opportunities will gradually emerge. As for financial and cyclical products, we need to pay close attention to the subsequent changes in monetary and fiscal policies before choosing the right time to participate.

Are funds rising or falling during the epidemic?

It is normal for funds to rise or fall during the epidemic. The stock market trend is the result of the combined effect of thousands of forces. It is difficult for us to judge which force will prevail. The market is full of many positive and negative factors every day, and the power of the epidemic may be insignificant when dispersed among them.

None of this is important. What is important is your judgment. Do you dare to enter the market now? No matter whether it has risen or fallen before.

Many people like to use previous trends to judge highs and lows. I have said before that most people don’t know what is high and what is low, just like you can’t judge the altitude of the land under your feet based on the speed of your breathing. Most people just judge based on the reference objects within their sight. When they just went down a slope, they think it is a low point, and when they just went up a slope, they think it is a high point, and they have no idea about the altitude under their feet.

Although the Yellow River has nine bends and eighteen turns, you can see that the water of the Yellow River comes from the sky and flows to the sea without returning. This is the power of altitude, so it is normal for the water to flow in any direction now, and it doesn’t matter where it flows, but in the end it will flow eastward.

How to invest in funds during the epidemic

The final control of the epidemic still needs to be observed, and the overall trend of A-shares still needs some time to become clear.

But when market fluctuations come, investors should re-examine whether the fundamentals of investment have changed and whether the logic of investment has changed instead of focusing on the short-term rise and fall of the market. If not, there is no need to be afraid of fluctuations and just wait for the flowers to bloom.

As for the market situation of "short-term fluctuations and long-term optimism", the best way to deal with it is actually an investment method that can be used for both offense and defense - "regular investment in funds".