What are the most common mistakes that Christians make in operating funds_The most robust fund operating method

In the fund market, we often see such a common phenomenon, That is, the fund makes money, but the fundamentalists do not. So do you know what are the most common mistakes that Christians make when operating funds? The editor will answer your questions below.

What are the most common mistakes that Christians make when operating funds?

Excessive trading: Frequent buying and selling of funds may lead to increased transaction fees and reduced long-term investment returns. Hyperactive trading is often based on short-term market fluctuations and ignores long-term investment strategies.

Emotionally driven investment decisions: When the market fluctuates, citizens may make wrong investment decisions due to fear or greed. For example, fear can lead to selling off assets, while greed can lead to overvaluing certain investments.

Lack of diversification: Putting all your money into a single fund or single asset class increases your portfolio's risk. Diversification can reduce risk and achieve more robust returns in different market environments.

How to operate funds in the most stable manner

Set clear investment goals and time frames: Clarify your own investment goals, and choose appropriate funds and asset allocation based on the target time frame. Long-term investing should focus more on solid returns than short-term fluctuations.

Choose the risk tolerance that suits you: Choose the appropriate fund type and asset allocation based on your own risk tolerance. Understand your own risk appetite and allocate your portfolio to a risk level that matches it.

Regularly review and adjust the investment portfolio: Regularly evaluate the performance of the investment portfolio and make adjustments based on the market environment and your own circumstances. Adjustments that are too frequent may increase transaction fees and the risk of wrong decisions, so adjustments should be made with caution.

Continuous learning and consultation with professionals: Actively learn about fund investment and communicate regularly with professional financial advisors. Professional advice and knowledge can help you make smarter investment decisions and better manage your funds.

Why can’t the fund’s returns keep up with the fund’s returns?

In fact, the fund’s profit and the fund’s loss have always been a pain point in the public offering industry, so why is the experience of the fund’s investment fund so bad? , a very important reason is that the way to invest in funds is incorrect.

Most investors are novices in the market, and they often like to buy funds based on performance rankings. However, the performance of funds at the top of the rankings often fluctuates greatly, and it is difficult to match their performance. Persistent.

There is no problem in buying funds based on their performance, but funds with good short-term performance that are ranked high are often funds that place heavy bets on a certain industry or hot topic. By the time the fund's short-term performance is on the list, it is likely to have risen to a certain level. , the space and possibility of continuing to rise are not that big. Buying at this time is a typical pursuit of high prices.

Even if the Niu Fund is 10 times its value in 10 years, the net value trend will not be straight upward. There will always be a correction stage due to market fluctuations. Fund losses and retracement may occur within a certain period of time. In most cases, the performance of the fund is actually relatively good in the long run. At this time, you need to give the fund time, and most investors are impatient and cannot persist in holding, thus missing out on the fund's rise in the later period. dividend.

The professionalism of most ordinary investors is limited and they are easily affected by negative trading mentality, such as greed, fear, etc., leading to frequent transactions. Frequent transactions will also cause losses in fund application and redemption fees, increase investment costs and weaken returns.

In summary, funds making money but investors not making money are often caused by the lack of long-term investment concepts in investment operations. There are situations where they chase short-term top funds, fail to hold on to good funds, and buy and sell frequently.

It is not difficult to invest in a good fund. Choose a fund with excellent and stable long-term performance managed by an excellent fund manager, insist on holding it or gradually build a position through fixed investment. With long-term fixed investment, I believe you will definitely get good returns.

How to turn losses into profits for funds

Investors can use the following investment strategies to turn losses into profits for the funds they hold:

1. Covering positions

When a fund has been losing money and investors believe that the fund will rebound in the later period, or are reluctant to cut their losses, they can choose to cover positions during the decline of the fund. By continuously covering positions, To reduce the cost of holding positions and diversify risks, for example, when the fund falls by 1%, the position will be covered by 1,000 yuan.

2. Sell high and buy low

When the fund has been losing money, investors can use the short-term rebound of the fund to perform T operations, that is, buy a part of the fund at a low level. Sell ??when it is high to earn a certain price difference and reduce its holding cost. It should be noted that in the process of selling high and buying low, the price difference income earned must be greater than the handling fee. Otherwise, the gain outweighs the loss.

3. Conversion

When a fund has been losing money, it means that the fund is relatively weak, and investors can choose to convert it into a relatively strong fund and use the income brought by the strong fund , to make up for previous losses.

4. Hold positions unchanged

Of course, when investors are not very sure about their active investment strategy, they can also adopt a passive investment strategy: hold positions unchanged and wait for the fund to rebound. set.

It should be noted that after a decline, it needs to rise by a larger margin to return to the original position. Then, when the financial product purchased by an investor falls by 10%, the return rate of the rise = 1/ (1-10%)-1=11.2%. Therefore, when the financial product purchased by an investor loses 10%, it needs to rise by 11.2% to recover the capital.

Buy funds at the end of the year or after the year

Buying funds at the end of the year and after the year are just different times. When buying funds, what everyone needs to pay attention to is not the time, because the fund The increase has little to do with the time of purchase. There is not much difference between buying funds at the end of the year and buying funds after the year. When everyone buys a fund, it depends on what type of fund it is and what the investment direction of the fund is. The rise and fall of the fund is related to the investment target of the fund. .

In other words, if the fund's investment target rises, the fund will also rise. If the fund's investment target falls, the fund will also fall. When buying and selling funds, the main thing is to earn the price difference, that is, at the low level. Buy when the price is high and sell when the price is high.

There are many funds. It is impossible to determine the low and high levels of the fund at the end of the year and at this time point after the year, so the reference is of little significance. When purchasing a fund, you can check Based on past fund returns, you can then choose a low-priced fund with prospects and room for growth. Analyze the fund's investment direction before buying it. Once the fund rises, sell it when you make money.

If the investor is a conservative investor, that is, he cannot bear relatively large risks, but wants to pursue a small return, he can consider a currency fund. A currency fund is a fund that invests in the money market. The risk is very small, the income is relatively stable, the possibility of making money by holding it for a long time is relatively high, the possibility of loss is relatively small, and the liquidity of monetary funds is also relatively good, generally on T+1 Can be redeemed into account.