The fund is very good, but... for the first time investing, I recommend buying stocks!

1 In fact, funds are a very good financial management tool. I used to work as an analyst in a fund company. My ambition at that time was to improve fund performance so that everyone can manage money easily by buying funds. But what about the second one?

For those who are investing for the first time, should they buy funds or stocks?

I will give the answer directly first, and then elaborate on the reasons. Precious first investment, buying stocks is better 2. First investment, 4 reasons why stocks are better than funds. Reason 1. The process of buying stocks is relatively simple. To buy stocks, you only need to open an account.

Whether you use a computer, a mobile phone, or even call a salesperson, you can easily complete the transaction, and you can get the money on the second trading day after the transaction. However, this is not the case when you buy, you have to pay immediately when you sell.

But it takes the third trading day to get the money. And the most troublesome thing is: when buying stocks, you can immediately know the price at which the transaction was made.

When buying a fund, unless you have settled the account and announced the net value when you buy it, you cannot be sure at what price you will buy it and sell it, and you will not know what the net value will be when you sell it tomorrow. Reasons 2. Holding a fund requires about 1.5%.

Management fees, you can save money by buying stocks. The basis of the fund company's operation is: find a lot of experts (hope the performance can be good) and raise a lot of money (convenient for diversified investment) charge you management fees, and earn 1.5 of the money you don't have time to manage.

% may not seem like a lot, but if you invest 1 million in one year, you will have to pay the fund company 15,000. If you invest in 10 years, you will have to pay it about 150,000. If you invest 10 million, you will have to pay it 150,000 a year. Note: This amount

Money, no matter whether you make a profit or lose, you have to give it to it. If you lose 10 million and lose 1 million and the remaining 9 million, it will still charge you 150,000!

Reason 3. Fund investment performance is not stable. Counting from October 2016 to 2017, after one stock surged at the beginning of the year, the market rose by 6%. Among many funds, only 15 beat the market by only about 30%!

Not many small investors who have funds outperforming the market lament that "you only make money on the index but not on the index." Reason 4. You may not make progress if you buy a fund. If you buy stocks, you will become better and better. Buying a fund, the money is in the hands of the fund company. Good luck if you buy it.

The first place China Merchants Securities Liquor B seems to be very happy to make 15.25%, but even if you make money, you don’t know why it is a successful model. You can’t replicate it next time. It’s bad luck. If you buy the last place fund, you will only lose 13%.

It’s different to think that you are unlucky and can’t learn any lessons. Buying stocks by yourself is different. Winning or losing is your own decision. Keep the method that will make money. It is a bad method. Next time, don’t accumulate it bit by bit to invest.

The skill will become more and more powerful.

3. Timing to buy funds: When we have more money, we can buy overseas funds because domestic stock information is readily available. There is no need to spend 1.5% in exchange for unstable performance. However, when we have more and more money, all the money will be held in China.

If the risk is too great, you can move some funds to invest in overseas markets.

Since it is relatively difficult to invest abroad, spending some money to buy overseas stock funds or overseas bond funds to diversify risks is a good asset allocation method. However, it is better to buy stocks yourself for the first time when investing.

Only by experiencing the sweetness and cruelty of the market can you truly learn to invest!

4 Conclusion Now that I have decided to start with stocks, the next lesson will explain... what stock investment is.