What is the principle of the fund?
The principle of the fund is that individual investors do not have the ability and energy to invest because of their lack of financial management experience. Individual investors buy their own funds into funds issued by fund companies, which is equivalent to handing over their own funds to fund managers for management. Fund managers charge the fees for purchasing funds, help investors manage funds, and distribute the profits to investors in proportion. If the fund loses money, the fund company does not have to bear the loss. Generally speaking, professionals manage money for unprofessional people, investors pay, and fund managers contribute.
How to buy a fund without losing money?
1. Fixed investment of the fund
The fixed investment of the fund can play a role in diversifying risks. If you insist on a fixed investment, you can share the cost and keep the cost down, so that the fund will not lose money.
Step 2 buy at a low price
There will be fluctuations in funds. Sometimes the fund price is very high, and sometimes the price is very low. It is necessary to find the right time to buy the fund at a low level and gain income in the process of rising.
3. Long-term investment
The short-term investment of the fund can't see the return, and the fund can't blindly chase up and down. Funds can only make money if they invest for a long time.
4. Choose a quality fund
If you want the fund not to lose money, you first need to ensure that the fund is a quality fund. Only high-quality funds can make high returns without losing money.
5. Don't be greedy for petty gain.
It is not that the cheaper the fund is, the higher the possibility of the fund rising. Many people have been misled by this. In fact, cheap funds may not have good investment space, even if you insist on long-term investment, you may still lose money.
Investors should choose a fund that suits them when choosing a fund, and they can choose to invest in the form of fixed investment. In fact, when the stock market is cold, the fund will still lose a little, but as long as it insists on long-term investment, it will pay off.