The first reason is that long-term holding may test the mentality of investors, but holding funds with excellent long-term performance will have a higher investment success rate. If there is no problem in the operation, management and investment direction of the selected fund products, although the short-term fluctuations may fall, the future prospects are still bright. On the contrary, if investors think that there is no chance to leave the market in the near future based on their own predictions of market trends, once mistakes occur, they may miss the rising stage. Waiting for the best stage of the market with long-term funds may be a safer and more effective way.
The second reason is that timing is a very low success rate. In the long run, it is more valuable to insist on disciplined investment. Investors often see various market views and analysis articles, and then make investment decisions accordingly. These markets have diverse views and different conclusions, and on this basis, the probability of making mistakes in trading is also high. The capital market is complex and unpredictable. If you want to get long-term good returns in the market, you must overcome human weakness and stay away from the dilemma of timing through disciplined long-term investment.
The third reason is that excellent active fund products have excess returns in the long run. According to the data of the fund industry association, from 200 1 to 20 16, the average annualized rate of return of partial stock funds in the whole market was 16.52%, while the annualized rate of return of the Shanghai Composite Index was 7.75% in the same period, and the average annual excess return was close to 9%, with more excess returns of excellent fund products. For excellent products, the benefits of long-term holding are very obvious, which can not only help us obtain long-term high returns, but also be an effective strategy for us to avoid investment losses caused by short-term market fluctuations.