In the process of investment practice, the following common irrational investment behaviors may lead to the failure of fund investment:

(1) unconsciously chasing up and down "I heard that Lao Wang made a lot of money by buying funds recently" "The performance of the stock market on 20 18 was so poor that it fell to 2500 points at 5438+00 in June. Should I sell all the stock funds? " Similar sounds can always be heard. Historical experience tells us that investors are easy to chase up and kill down in the process of investing in equity products. They see that others have made money by buying funds, and they also want to invest in stock funds, often chasing the market to buy them. The higher the market, the higher the position. The same is true when the market falls. The more you reach the low point of the market, the more you rush to sell in panic. The result of this practice is that the investment process is constantly chasing up and down, resulting in more and more losses and less and less principal.

(2) Making decisions based entirely on past performance It is true that the past performance of funds, especially active management products, can better reflect the management ability of fund managers and is also an important basis for investors to refer to in the process of making investment decisions. However, past performance does not represent a commitment to future investment ability, especially short-term performance, which may often mislead decision-making. This is because markets and industries usually have the characteristics of cyclical fluctuations, which were good for a while in the past and may have the risk of adjustment in the future; The past period was not good, and the future may be reversed.

(3) Lack of risk awareness From the history of the past 20 years, as a popular financial management tool, funds can bring good medium and long-term investment returns to investors as long as they are used properly. Compared with direct investment in stocks, funds, as a portfolio investment tool, have relatively low risks; However, Public Offering of Fund, especially partial stock funds, also has certain risks. The market is unstable and the fund is risky. We should not only see the potential benefits of investment, but also bear in mind that benefits and risks coexist!

(4) Lack of awareness of long-term holding The timing of investment is indeed important, but what is more important than the timing of entering the market is long-term holding. It is very dangerous to use the thinking of short-term trading to make fund investment, not only because the short-term timing itself is very difficult, but also because the application cost of the fund itself is very high. Frequent trading not only has a high probability of making mistakes, but also produces very high transaction costs, and the results are often counterproductive.

(5) Improper product selection No product can meet the needs of all investors. Different types of products have different risk-return characteristics, and investors need to rationally choose fund types according to their own conditions. Just as low-risk investors are not suitable for allocating too many high-risk equity funds, investors with high risk appetite, strong risk tolerance and high requirements for expected returns are not suitable for allocating too many assets to low-risk fixed-income funds. Even for the same kind of products, different funds will have their own styles and characteristics. In the specific decision-making process, investors need to clearly understand the risk level, product category, investment direction and investment style of their selected products.

How to reduce the risk of fund investment (1) Adhere to portfolio investment. The so-called portfolio investment means "don't put all your eggs in one basket", which is an effective way to reduce the risk of fund investment. Modern financial theory proves that portfolio investment can effectively reduce the non-systematic risk of the securities market. However, it should be pointed out that portfolio investment is not a simple repeated investment. If investors repeatedly buy multiple products indiscriminately, it will not reduce the risk. A good fund portfolio is not that the more funds, the better, but that the degree of differentiation of fund products should be improved and the number should be appropriate in order to achieve the purpose of diversifying risks.

(2) Investment in fixed investment funds Whether it is active stock funds or passive index funds, fixed investment funds are more suitable for investors who lack investment experience or have insufficient energy to analyze and track the market. Its significance lies in that the risk of market fluctuation can be avoided to some extent through disciplined bulk procurement. The fixed investment of the fund can't help us "bargain-hunting", but it can help us share the purchase cost equally.

(3) Have a reverse operation thinking. Buffett has a famous investment saying: others are greedy and I am afraid, and others are afraid that I am greedy. This sentence is about the thinking that investment should be operated against market sentiment. Most people follow the market sentiment in the actual operation process, and this way of thinking is essentially determined by human nature. The market is always fluctuating. In addition to portfolio investment and fund fixed investment, when the market sentiment is depressed, the deduction amount of fixed investment or the position of stock fund should be appropriately increased; When the market sentiment is high, it is also an effective way to avoid the investment risk of stock funds by appropriately reducing their positions.