As the number of people making money from funds gradually increases, the number of people who start to contact and invest in funds is also gradually increasing. According to last year's data, the return on investment of equity funds in 2020 was 50.72%, which means that if you held a certain fund without moving it throughout last year, you could get such a high interest rate.

Why do funds always earn less than the returns displayed by the fund?

First, there are many types of funds, and choosing funds is a difficult problem

In 2020, the cumulative number of public funds reached more than 7,700. The popularity of the market has brought about the popularity of new fund issuances. The total number of funds in a year is still increasing, and the average annual growth rate of the number of equity funds is as high as 24%. Among such a large number of funds, selecting a few funds for investment is tantamount to finding a needle in a haystack. The information that needs to be screened and the data used are also very complex.

Second, if you are accustomed to sprinting, you will not be able to become a victorious general

It is extremely rare for a fund to achieve high returns for many years. Even if it is a high-quality fund, if you want The probability of getting high returns by entering and doing short-term trading at any point in time is also relatively low, because its excellent performance is also the result of the average return of relatively high returns in some years. The longer the holding period, the greater the probability of obtaining high returns.

Third, the timing is inaccurate and cannot be bought and sold at the most accurate node

This is caused by the investor’s own behavior. Obviously, at the time node of investment, Investors are at a disadvantage. Judging from the data, when the market rises, investors continue to subscribe for equity funds, and when the market falls, they continue to redeem funds. It can be seen that investors can never get rid of human nature. Weaknesses: chasing ups and downs in investment, it is easy to buy halfway up or at the top of the mountain and sell at the bottom.

In summary, fund investment purchases and sales require payment of handling fees. Therefore, it is better not to trade frequently when investing in funds. Excessive trading will cause your own rate of return to decrease.