Share the regular investment plan of funds, the bull market has passed, and the bear market has arrived.
The Planet (Group) does not talk much about funds, but the key is precision. The previously mentioned Nasdaq 100 QQQ and HSeng BioTech 3069 have both reached historical highs, and ARKK has also rebounded.
1.
The constituent stocks of Nasdaq 100 are the highest quality companies in the US stock market, such as Google, Microsoft, Nvidia, and so on. The constituent stocks of 3069 are the best pharmaceutical companies in the Hong Kong stock market, such as Wuxi Bio and Innovent Bio. ARKK relies on Cathie Wood's operation and holds many innovative companies, which perform very well in bull markets and also decline significantly in bear markets.
I started to regularly invest in QQQ when it was around 290, and now it's 349. I started to invest in 3069 at the beginning of April at 25, and now it's 29.1. Both have gained more than ten percentage points, which I think is quite good for funds. I bought ARKK at 120 or below, but I sold all of it during the subsequent decline, so I didn't earn much.
II. Funds
A fund is actually a portfolio of stocks, with each holding a small position, which spreads the risk of individual stock collapses. However, when the stock market or sector market declines, the fund will also decline, but the decline is relatively smaller compared to individual stocks.
Funds are divided into active funds and index (passive) funds. Active funds, such as ARKK, rely on fund managers to select stocks and time the market. Index funds, on the other hand, track specific indices as their benchmarks and invest in the component stocks of those indices, with less impact from human factors. For example, QQQ tracks the top 100 companies in the Nasdaq Index.
Three. Regular Investment Plan (RSP)
When we talk about RSP, we usually refer to regular investment in index funds, which means investing a fixed amount of money in a specific index fund regardless of its performance. The benefit of this approach is cost averaging. Since the investment amount is fixed, when the fund's net asset value is high, you buy fewer shares, and when it's low, you buy more shares, which averages out the cost.
RSP is actually quite suitable for ordinary people, using spare money for regular investment. The investment period for RSP is usually set on a monthly or bi-weekly basis.
Four. Selection of RSP Targets
Which index funds should be selected? I think healthcare, consumer, and technology-related index funds are okay.
Five. Funds Suitable for RSP Now
QQQ and 3069 have both reached new highs. I didn't buy before, now opening new positions, it may not be a good time to buy.
But the bull market is over, the bear market has arrived.![]()
But the bull market is over, the bear market has arrived.
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