Teach you how to establish a correct investment fund mentality

Everything needs a good mentality, and so do investmentfunds. So how to establish a good mentality? Xiaobian summarizes the following points for everyone:

Investment funds is a collective investment system with * * * benefits and * * * risks. Investment funds concentrate investors' funds, which are managed by professional managers entrusted by the fund custodian, specializing in investment activities. What people usually call funds mainly refers to securities investment funds. There are two main methods to judge and predict the price of securities market: basic analysis and technical analysis. Because the users of the two methods are completely different in theory and operation, they are also called two schools. Among them, basic analysis is mainly applied to the selection of investment target, while technical analysis and evolution analysis are mainly applied to the time and space judgment of specific investment operations as an important supplement to improve the effectiveness and reliability of investment analysis.

under the background of increasing varieties of securities market and increasing transaction complexity, the gap between ordinary people and professionals in business performance is getting bigger and bigger. Entrusting a few personal funds to a special investment manager for centralized operation can also achieve the effect of diversification of investment and risk reduction. Investment fund is a kind of financial organization, in which many uncertain investors voluntarily pool their different investment shares, and the investment is managed by experts, and the income is shared by investors in proportion to their investment. The funds come from the public, enterprises, organizations and government agencies. Residents' individual investment can apply for purchase when the fund is raised and issued, or they can buy listed funds in the secondary market.

The investment fields of an investment fund can be stocks, bonds, industries, futures, etc., and the investment in a listed company shall not exceed 1% of the total amount of the fund (this is stipulated by China, and all countries have similar investment restrictions). This makes the investment risk decrease with the diversification of investment fields, so it is an investment method between savings and stocks.

With the subdivision of investment and financial management, more and more people think that fund investment is a good investment method, but there are great differences between funds and stocks, so it is very important to deeply understand the differences between them and establish a correct fund investment mentality before investing in funds.

first, funds are essentially long-term investments. Partial stock funds generally invest in dozens of stocks, so there is a great correlation between the change of their net value and the market. In the short term, such as weeks and months, they will not show independent ups and downs without leaving the market. Therefore, Xiao Bian reminds that fund investment must accumulate income by means of long-term compound interest, and it is unrealistic to hope to earn a lot of profits through fund investment in the short term.

second, fund investment is passive compared with stock investment. After investing in the fund, the control of what stocks to buy and sell and which industries to hold heavy positions is in the hands of the fund manager, not in the hands of investors. Since you buy a fund, you should keep your trust in the fund manager for a period of time. If you don't have patience for at least one year, you shouldn't buy funds from the beginning. In other words, the investment period of partial stock funds is at least one year.

Third, the expense ratio of fund investment is relatively high. At present, the management rate and custody rate of partial stock funds add up to about 1.75%, the subscription and redemption fee is about 1.5%-2%, and the annual expense rate is about 3.5%. This feature determines that investment funds are absolutely impossible to buy and sell frequently.

Fund investment is long-term. Therefore, it is meaningless to predict the short-term market when investing in funds. Not many people can see the short-term trend of the market with great probability. The short-term trend forecast of individual stocks and industries is of little significance to fund investment. The decentralized nature of the fund itself makes it unnecessary for investors to predict individual stocks and industries themselves. If investors believe in their own judgments on individual stocks, industries and markets, they should make profits by investing in stocks or actively operating index funds. It is logically impossible to borrow partial stock funds.

Therefore, the selection of funds is mainly based on its long-term performance in the past, and short-term performance is only a reference indicator. In this way, there will be a contradiction. Investors often look at a fund in a short term, such as one or two months. However, funds that have performed well in the past for a long period of time are likely to perform poorly in the short term, which is related to the change of market style and the rotation between industries. This contradiction is inevitable. After all, the fund investment is long-term, and investors who can't stand the short-term net value fluctuation of the fund should reconsider their risk tolerance and choose more stable varieties. We usually list the biggest monthly decline of the recommended fund in the past long period, that is, to tell investors what the biggest loss is.

Finally, Xiao Bian reminds that even for funds, diversified investment is necessary. Generally speaking, 3-5 funds, including stock funds, partial stock mixed funds, bond funds, and the combination of different styles are better choices. What investors should also pay attention to is the control of the overall partial stock fund positions. Only by establishing a correct investment mentality and mastering more information about fund investment can we fight a protracted war.