Other funds may not be profitable for a long time, but index funds continue to be profitable. There is a basic logic in this, that is, index funds can reflect the overall average level of listed companies in China with high correlation. If China's economy continues to develop in the future, listed companies, as a barometer of the economy, represent the performance of the best companies in China. Why can't the net value of index funds continue to grow?
But generally speaking, if you want to hold index funds for a long time, you must choose a number of index funds that are highly related to the overall listed companies. If you choose an index fund, the index is not strong, so it cannot reflect the rising level of the whole economy. For example, in general, we choose the Shanghai and Shenzhen 300 Fund, the Shanghai Stock Exchange 100 Fund, or at least the Shanghai Stock Exchange 50ETF Fund. Sometimes, if you choose a fund issued by a small company, or a fund that is not an index fund, it is very likely that the market index will rise, and the fund you own has not effectively increased its net worth.
So what kind of term does this long-term holding generally refer to? Personally, three to five years does not reflect the long-term nature of its holdings. Because China's economic cycle is by no means a small cycle that can be completed in three to five years. We should take a long-term view and see it for more than 5 to 8 years. As for whether it is necessary to adjust positions or optimize fund transactions during this period, that is another investment strategy. This is the so-called cyclical position adjustment strategy. But for ordinary investors, it may not have this ability. In this case, the best way is to continue to hold it, and the best policy is not to move.
So did you make money by holding index funds in the past? In fact, if you look at our index fund carefully, it still makes money. But sometimes he may not be able to beat the market. In our unique stock market atmosphere, many things can't really reflect the changes in the market. It is reasonable to say that index funds should change with the change of the market index, but it is possible that they chose different ones, and the fund manager adjusted the allocation ratio of index funds, which eventually led to the fund's income falling behind the market index.
With the improvement of China's securities market, in fact, index funds will become more and more investment tools for various conservative investors in the future. The imperfection of the past does not mean the imperfection of the future. Our securities market will be more and more healthy in the future. However, if you invest in index funds, you must abandon the idea of 10% daily limit in one day. He needs patience and vision, which accumulates over time.