Whether you are an old investor or a new investor, if you happen to encounter a bull-bear cycle, I suggest you buy stock funds, while novices can buy index funds, but it is best not to Touch stocks. Because the advantages of expert financial management are obviously stronger than those of retail investors. At this time, new investors need to adjust their mentality. Don't expect that a bull market will change their destiny. As long as they can get slightly higher than the average increase of the stock index in the bull market, it is a victory.

Some people may ask, should I buy stocks when the bull market comes? Why do I have to find a fund to speculate in stocks for me? We believe that, at least for new investors, if this is your first time exposed to a bull market, it is better to buy index funds, because in this way index funds will basically not underperform the general trend, and investors can learn and make money at the same time.

First of all, even in the rising stage of the bull market, there will be listed companies with explosive performance. For novices, it is easy to step on the performance mines of stocks. As a public equity fund, the probability of stepping on the mines is very small, and even if it steps on the mines, due to the diversified holdings, the proportion of buying individual stocks is not large, and the impact on the net worth is very large. limited. Therefore, for the sake of stability, when encountering a bull market, it is recommended that investors buy funds.

Furthermore, many old investors reflect that "only making money on the index does not make money" in the bull market. This is mainly because these investors bought stocks that were favored by the market. Taking this round of technical rebound as an example, the stock market has risen by more than 30%, and the growth rates of individual stocks vary greatly. Some brokerage stocks, financial stocks, and technology stocks have experienced huge increases, but some small and medium-sized board stocks have not outperformed the index. It only increased by about 20%. If new investors don't know how to buy stocks, and old investors don't want to make money on the index but not on the index, and want to get a rate of return slightly higher than the increase in the index, it's better to buy index funds.

Thirdly, as institutional investors, index funds can use stock index futures to hedge the risk of the stock market turning from a bull market to a bear market, but retail investors cannot do this by themselves. Therefore, theoretically speaking, the risk resistance of buying index funds or stock funds is much stronger than that of stock investors. In addition, public funds have the largest position in the bull market, and can reach up to more than 70%. If new shares are allotted according to market value, public funds can take advantage of the opportunity, and the income obtained from the allotment of new shares will be apportioned to the net value of each unit, and the final gain will be What benefits are the Christians.

Finally, as long as new investors and old investors buy stock funds, they will not redeem them easily. This can avoid you thinking about making short-term price differences when buying stocks, which makes it easy to There is the risk of being abandoned by the market in a bull market and losing the bull market. Once you buy a stock fund, investors' life becomes easier. They no longer need to care about the stock market all day long. They only need to regularly check how much the net value of the fund they bought has increased during this period. Therefore, for new investors, buying funds can allow you to avoid the temptation of frequent short-term actions, follow the stock index all the way, and finally achieve positive results. Of course, when the bull market is almost at its top, you must also learn to leave and retain the fruits of victory.

In a bull market, is it better to buy stocks or funds? If you buy the right stock that outperforms the general trend, and you can hold it until the top of the bull market, then the return from buying the stock will definitely be greater than buying the fund. But for new investors, everything is in the initial stage. Although the rate of return may not be very high if you buy an index fund, you can at least enjoy the average dividends of the bull market. Moreover, funds are far better than retail investors in terms of short-selling tools and financial strength. If you encounter a bull market, new investors may wish to earn several times the price difference by buying index funds. It will definitely be no problem.