Recently, the stock market has fluctuated and its style has changed. Many investors have experienced ups and downs and their mentality is a bit impatient. In fact, risk and return are two sides of the same coin. While holding active equity funds, we should be prepared to endure net withdrawal. Today, Bian Xiao will share with you how many retreats you have to endure when holding stock funds, for your reference only!

In recent 15 years, the annual maximum retracement of the Shanghai Composite Index exceeded 1 1 5%.

First of all, from 2006 to 2020, during the period of 15, the largest retracement of the annual closing price of the Shanghai Composite Index can be found:

Only 20 14 and 20 17, the maximum annual retracement of the Shanghai Stock Exchange index is within 10%, and the maximum retracement of other 13 indexes all exceeds 10%, 1 1 index.

Even in the bull markets of 20 15 in 2006, 2007 and 2015, there were cases where the Shanghai Composite Index suddenly pulled back to around 10% on the way up.

For example, in the well-known bull market in 2007, the Shanghai Composite Index gained a one-year increase of 1 13.05%, and the biggest retracement in that year also reached -2 1. 16%.

On the way to the bull market in 20 19 and 2020, the maximum retracement of the Shanghai Composite Index reached-15.35% and-14.62% respectively.

In recent 15 years, the maximum retracement of stock fund index 14 years exceeded 10%.

We continue to look at the maximum retracement of the total index of stock funds (8850 12. WI) Recent 15 years-

First of all, the retracement of the fund is better controlled than the index, and the maximum retracement is smaller than the Shanghai Composite Index most of the time.

Secondly, during the period from 2006 to 2020, only the annual maximum retracement in 20 17 years was within 10%, the maximum retracement in other 14 years was above 10%, and the maximum retracement in 9-year index was15.

Even in the big bull market in 2007, the total index of stock funds gained a one-year increase of 1, 2 1.90%, and the biggest retracement in that year reached-16.04%.

Similarly, in the bull market of 20 19 and 2020 for two consecutive years, although the total index of equity funds increased by more than 38% every year, the maximum retracement also exceeded-13%.

Three Enlightenments Brought by Maximum Retreat

Knowing the biggest market retreat of 15 in the past, what enlightenment does it bring us?

1. If you are determined to invest for a long time instead of making a vote in the A-share market, you should do a good job in the psychological construction of suddenly withdrawing from 10% or even 15%.

2. Excellent stock funds bear systematic risks in the market, but because good securities selection can accumulate excess returns in long-term investment, they can finally turn small wins into big wins under the magic of time.

3. Also give some suggestions to high-risk investors:

If the construction of the investment warehouse has been completed now, but the incremental cash flow is brought by the year-end bonus, salary and other reasons, then it seems risky to choose a fixed investment against the market when the fund withdrawal is relatively large, but it is actually rational.

In the past two years, the returns of funds purchased by many investors are generally unsatisfactory. What caused the large losses of most funds? Mars, an analyst at Shanghai Securities Fund Evaluation Center, pointed out that, first of all, the essence of fund products is the combination of securities, and the performance of fund income is closely related to the performance of the underlying market. In the continuous decline of the stock market, it is difficult for equity funds and hybrid funds, which mainly invest in stocks, to achieve positive returns. In the case of rising stock market, most partial stock funds can often achieve positive returns. Therefore, it is impossible for funds to create myths and create high positive returns in the continuous decline of the market in recent years.

From the long-term performance, in most cases, the overall performance of funds is better than that of individual investors, especially in bull markets and volatile markets. For example, in 2006 and 2007, more than 80% of equity funds achieved a return of more than 100%, while the proportion of individual investors was less than 20 12 years. Nearly 50% of equity funds have achieved a return of 5% to 30%. According to the survey, more than 50% of individual investors have lost between 5% and 50%. Therefore, the fund is still a good investment tool for individual investors to participate in the capital market.

All kinds of problems, whether China's stock market construction, economic development or asset management industry, can't be eliminated in a short time, and all need the rationality of the market as a whole to promote it. However, as investors themselves, we must measure our risk tolerance clearly and not blindly listen to the propaganda of sales staff. If your risk tolerance is weak, or the funds you want to use in the short term, you can't invest too much in a single stock fund to avoid being greatly affected by the risk of stock market fluctuations. Therefore, for individual investors, it is more meaningful to have a long-term investment mentality, choose appropriate fund products according to their own risk tolerance and renewal, avoid excessive pursuit of popular funds with outstanding short-term returns, pay more attention to funds with relatively stable long-term performance, and spread risks through fixed investment and portfolio allocation to obtain long-term stable returns.

Tip:

First, we should pay attention to arranging the proportion of fund varieties according to our own risk tolerance and investment purpose. Choose the fund that suits you best, and set an investment ceiling when buying partial stock funds.

Second, be careful not to buy the wrong "fund". The popularity of funds has led to some fake and shoddy products "fishing in troubled waters", so we should pay attention to identification.

Third, pay attention to the post-maintenance of your account. Although the fund is worry-free, it should not be left unattended. Always pay attention to the new announcements on the fund website, so as to have a more comprehensive and timely understanding of the funds you hold.

Fourth, pay attention to buying funds, and don't care too much about the net value of funds. In fact, the fund's income is only related to the net growth rate. As long as the fund's net growth rate stays ahead, the income will naturally be high.

Fifth, we should be careful not to "love the new and hate the old" or blindly pursue new funds. Although the new fund has inherent advantages such as preferential prices, the old fund has long-term operating experience and reasonable positions, which is more worthy of attention and investment.

Sixth, we should be careful not to buy dividend funds unilaterally. Fund dividend is the return of investors' previous income, so it is more reasonable to change the dividend method to "dividend reinvestment" as far as possible.

Seventh, we should pay attention not to talk about heroes in the short term. It is obviously unscientific to judge the pros and cons of the fund by short-term ups and downs, and it is necessary to make a comprehensive evaluation of the fund in many aspects and conduct a long-term investigation.

Eighth, we should pay attention to the flexible choice of investment strategies such as steady and worry-free fixed investment and affordable and simple dividend transfer.

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