We saw a statistic on the Internet that a fund doubled its income in 2020, with an increase of about 1.20% last year, but less than 20% people actually made money from this fund. So why do funds make money and citizens don't? There are usually several reasons. Please see the text for details.

1, buy high and sell low.

According to the fluctuation of the market, many white people who just started to contact funds will think that they are excellent when the market is high, and they will add money to buy funds, and then some people will like to buy funds in a more fashionable way. Unfortunately, they will buy at a high level.

Then the fund began to fall and redeemed at the lowest point. It is normal to lose everything. But as long as you don't sell, the fund will invest to spread short-term risks. The next high point is your chance to make money, but it will take a long time.

2. Frequent transactions and high handling fees.

There is an old saying that you can't eat hot tofu if you are impatient. Many small white novices will ignore the handling fee of the fund, and then you need to pay a high handling fee in day trading, some as high as 2.5%. Although some of them are bought with a handling fee of 0, it depends on the holding time if you sell them. There is generally no selling fee for more than 730 days, depending on the situation of the fund.

Generally speaking, in addition to the above two points, there are objective reasons such as fund managers and markets, or investors have wrong investor behaviors such as blindly chasing up and down, short holding period, like chasing hot spots, superstitious about "champion funds" and favoring "cheap" funds.