How many sectors are best to choose when buying a fund? Why?

New energy vehicles is definitely one of them.

First, let's look at the timetable for banning the sale of fuel vehicles in various countries and regions of the world

Rome, Italy, from 2024 onwards, banning the sale of traditional fuel vehicles

Norway, Mexico, Paris, France, Madrid, Spain, from 2025 onwards, banning the sale of traditional fuel vehicles

Germany, the United Kingdom, Sweden, Denmark, the Netherlands, India, Iceland, Israel. Ireland, Tokyo, Japan, Hainan, China, California, USA Ban on conventional fuel vehicles from 2030

It can be seen that many developed countries are gradually banning the sale of conventional fuel vehicles in the next 10 years.

And then look at the annual global vehicle production (including commercial and passenger vehicles, source: OICA)

Annual production of 130 million units

Imagine that. Imagine how big the market would be if all these vehicles were new energy vehicles.

In the country, the 14th Five-Year Plan, as well as this year's Central Economic Work Conference have repeatedly referred to the scientific and technological self-improvement, to strengthen the country's strategic scientific and technological strength. To solve the problem of high-tech technology being necked.

Relative to all high-tech, are the state vigorously support, why here recommended new energy vehicles, and not recommended chip industry? I happen to have worked for 5 years in a world-ranked third memory chip company. I've been working in the automotive industry for 6 years. The two main differences:

1, start: chip industry at home and abroad start time difference is large, the old U.S. and Japan at the end of the 50's and early 60's, the new energy automobile industry start is not the same, basically and Europe and the United States and Japan start time difference of no more than 10 years, and the real large-scale development of the basic in the same track.

2, Moore's Law: The number of transistors that can be accommodated on an integrated circuit doubles about every 24 months. In other words, the performance of a chip processor doubles every two years. According to this law, in the chip industry if we want to catch up with foreign countries that is certainly more efforts. New energy sources, on the other hand, are not developing as fast.

Of course I believe in the country's vigorous development, we can certainly also produce great chip companies, but for investment purposes, just think I do not have enough vision to catch these companies.

Similarly with the country's strong support and the development trend of the whole world, I would prefer to invest my money in the new energy automobile industry and choose a fund for the new energy automobile industry.

Some funds in the new energy industry have gone crazy this year, but I think it's just the beginning. The real beginning of the outbreak is definitely after the charging problem is solved, I believe that will bring a complete revolution to the automobile industry, really affect our lives.