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13 Sep 2025
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Proven fund allocation suggestions
1. Diversify investments to achieve risk balance
For new investors, it is recommended to invest in 8 to 10 stocks to achieve proper diversification of the portfolio. The capital allocation for a single stock should be limited to 8%-15% of the total investment amount to avoid excessive impact of individual stock fluctuations on the overall investment. If the capital is limited, the number of stocks can be appropriately reduced, but the selected stocks should cover different industries such as technology, healthcare, consumer goods, and finance to further reduce systemic risk.
2. Allocate stable assets to ensure safety
It is recommended to allocate 20%-30% of the funds to relatively stable asset classes such as bonds, gold, or ETFs. These types of assets can provide a defensive function during market volatility, helping investors withstand short term risks. For example, gold performs well during periods of economic uncertainty, while bonds can provide a stable source of income, adding a layer of protection to the portfolio.
3. Dynamically adjust allocation to adapt to market changes
The market environment is constantly changing, so investors should adjust their fund allocation in a timely manner based on market conditions. In a bull market, it is advisable to gradually increase holdings in high growth sectors such as technology, new energy, or consumer goods to capture the maximum gains from the upward trend. In contrast, during a bear market, one should increase the proportion of defensive assets such as high-quality blue-chip stocks, bonds, or cash equivalent assets to reduce the impact of market downturns on the portfolio. In addition, using a phased entry strategy can smooth out investment costs and avoid losses caused by investing a lump sum at market highs.
4. Keep emergency funds to handle the unexpected
Investors should reserve 10%-20% of their funds as liquid emergency reserves to deal with sudden market downturns or personal urgent needs. This portion of the capital can not only be used to purchase undervalued stocks during sharp market corrections, but also has the potential to bring additional returns when the market recovers
[7:55 pm, 13/9/2025] +91 761 832 3576: Scientific fund allocation is the foundation of successful stock market investment, as it balances risk and return across different market phases. By diversifying investments, dynamically adjusting fund allocation, and reserving emergency funds, investors can handle market volatility more steadily and achieve long term return goals. These techniques will provide new investors with a clear operational framework, helping them take their first successful step in the stock market.
For new investors, it is recommended to invest in 8 to 10 stocks to achieve proper diversification of the portfolio. The capital allocation for a single stock should be limited to 8%-15% of the total investment amount to avoid excessive impact of individual stock fluctuations on the overall investment. If the capital is limited, the number of stocks can be appropriately reduced, but the selected stocks should cover different industries such as technology, healthcare, consumer goods, and finance to further reduce systemic risk.
2. Allocate stable assets to ensure safety
It is recommended to allocate 20%-30% of the funds to relatively stable asset classes such as bonds, gold, or ETFs. These types of assets can provide a defensive function during market volatility, helping investors withstand short term risks. For example, gold performs well during periods of economic uncertainty, while bonds can provide a stable source of income, adding a layer of protection to the portfolio.
3. Dynamically adjust allocation to adapt to market changes
The market environment is constantly changing, so investors should adjust their fund allocation in a timely manner based on market conditions. In a bull market, it is advisable to gradually increase holdings in high growth sectors such as technology, new energy, or consumer goods to capture the maximum gains from the upward trend. In contrast, during a bear market, one should increase the proportion of defensive assets such as high-quality blue-chip stocks, bonds, or cash equivalent assets to reduce the impact of market downturns on the portfolio. In addition, using a phased entry strategy can smooth out investment costs and avoid losses caused by investing a lump sum at market highs.
4. Keep emergency funds to handle the unexpected
Investors should reserve 10%-20% of their funds as liquid emergency reserves to deal with sudden market downturns or personal urgent needs. This portion of the capital can not only be used to purchase undervalued stocks during sharp market corrections, but also has the potential to bring additional returns when the market recovers
[7:55 pm, 13/9/2025] +91 761 832 3576: Scientific fund allocation is the foundation of successful stock market investment, as it balances risk and return across different market phases. By diversifying investments, dynamically adjusting fund allocation, and reserving emergency funds, investors can handle market volatility more steadily and achieve long term return goals. These techniques will provide new investors with a clear operational framework, helping them take their first successful step in the stock market.