The correct way for Christians to buy funds_Why you should not rush to buy funds

In the fund market, we often see a common phenomenon, that is, funds make money, and Christians don't make money. So do you know the correct way for Christians to buy funds? The editor will answer your questions below.

The correct way for Christians to buy funds

Set clear investment goals: Before buying a fund, clarify your investment goals and investment period, as well as your risk tolerance. This helps you choose the type of fund and risk level that suits your needs.

Research fund products: Carefully study the characteristics, historical performance, fees and other factors of fund products. Understand information such as fund investment strategies, fund managers’ management capabilities and fund size to make informed investment decisions.

Diversification: Diversification is an effective way to reduce risk, so don't invest all your money in a single fund or asset class. Diversify your investment portfolio by choosing funds of different types and styles, as well as funds investing in different industries and regions.

Regular fixed-amount investment: Using the method of regular fixed-amount investment and purchasing fund shares regularly, you can obtain the average purchase cost effect no matter how the market conditions change, and avoid making emotional investment decisions due to market fluctuations.

Understand fund risks: Fund investment is risky, and different types of funds have different risk characteristics. Understand the risk and return characteristics of fund investment, clarify your risk tolerance, and choose funds that meet your risk preferences.

Why you should not rush when buying funds

Market risk: Rushing to buy funds may lead to irrational investment decisions and greater risks when the market fluctuates greatly in the short term.

Investor needs: There are many types of fund products, and investors need time to research and understand different products and choose funds that meet their needs.

Understand funds: When purchasing a fund, you need to understand the fund’s investment strategy, fees, risks, etc. It takes time to conduct in-depth research and understanding.

Risk needs to be considered: When purchasing funds, you need to consider your own risk tolerance and choose a suitable fund type and risk level, which requires some time and thinking.

Why can’t Christians keep up with fund returns?

Funds make money while Christians lose money. In fact, this has always been a pain point in the public offering industry. So why is the experience of Christian investment funds 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 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. If you make a long-term fixed investment, 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 up positions

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

2. Sell high and buy low

When a 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 costs. 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, a larger rise is needed 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 a fund at the end of the year and buying a fund 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. .

That is to say, 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.