Because no one can really know the trend of the stock market tomorrow,
Like Buffett, it is too little to look at a good stock for decades.
Basically, it's normal to lose seven, make two draws and make one profit in stock trading, so it's difficult to make a profit of 10% every year.
However, the fixed investment of index funds can be done and it is very easy.
Five benefits of investment funds:
First, give professional things to professional people to do. Some people compare investment funds to "taking a bus", which is equivalent to someone driving for you. The fund manager is the person who plays such a role, managing money for you, saving trouble, and not having to find a way by himself. What we have to do is to choose what kind of driver and how many times to take the bus.
Second, the threshold is low and the cost is cheap. 10 yuan can get on the bus, and there is a 10% discount on the handling fee of the third-party trading platform;
Third, there are bus lanes. Fund companies and fund managers have access to projects that you as an individual investor can't. You can invest indirectly, such as the recent fire ant placement strategy fund, regardless of the good or bad results for the time being, but it also gives many white opportunities to participate in new shares.
Fourth, the transaction is flexible and you can get on and off at any time. Compared with fixed-term investment products such as bank wealth management, trust products, private equity funds and P2P, most Public Offering of Fund can buy and sell at any time;
Fifth, the fund manages the custody bank, and it is easy to have an accident by taking a black car, but you have never heard of bus drivers absconding with money, have you? So for small white investors, it will be more comfortable to take the bus!
The index is equivalent to buying a forest, from which we can make money by selling wood.
The price of wood will fluctuate and be uncertain, but we can be sure that this forest will add 10- 15% of wood every year, so even if the price of wood remains unchanged, the overall increase is still profitable;
So this is also the two characteristics of index funds: immortality+long-term rise.
With these two pillars, we can judge the historical position of the current valuation of the index according to the historical data of the index, and then get whether it is underestimated or overestimated.
When is the biggest profit? It is to buy wood when it is undervalued and then sell it when it is overvalued. A-share bull market cycle is almost 7 years. As long as you persist in this way, you can get the greatest benefit.
PS: Relatively speaking, active funds rely more on fund managers and cannot evaluate historical valuations. Investment is more difficult, and the return is better than that of index funds, but at the same time, the risk is greater and the retreat will be more severe.
Without Jin Gangzuan, it is suggested not to engage in porcelain work, and do a good job in the fixed investment of index funds. The steady annual income of 65,438+00% is still very fragrant.
I am Xiaoyu, and I like to share financial dry goods with you in vernacular. If it is useful, please like it. It is an encouragement to me and a witness to my own study ~
I started writing books recently. I'm usually too busy at work during the day. I have coded nearly 8000 words during the weekend, and I understand more and more that I should be modest and not proud. Your understatement is because I didn't see the efforts behind others. Things in the world really don't have the word easy, so I really can't write anymore. I don't think I can fail you, because I have added a lot of fans recently, so I'm here. Go! Come on! !