Should I pay attention to the stock market trend when buying funds?
In most cases, investors do not need to pay attention to the trend of the stock market when buying funds. You only need to pay attention to the trend of the fund you buy and the change of the investment direction of the fund manager. However, there are also a few cases that need to choose whether to buy or sell funds according to the stock market environment, such as bull market and bear market.
Although the fund and the stock market are inextricably linked, this is not the main reason. The key factors affecting the rise and fall of funds are: policy introduction, exchange rate, bull market and bear market, fund dividends, huge redemption, black swan incident, fund statistics and other decisions. In fact, if we really dig deeper, we will find that the relationship between the rise and fall of funds and the stock market is relatively small. Compared with the stock market, it is unpredictable every day, while the fund is relatively stable.
Furthermore, when we buy funds, we give money to fund companies and fund managers to invest instead of us. We just need to pay attention to whether the fund we bought has reached the take profit point or stop loss point and when to sell it. If you study the stock market every day, you might as well buy stocks. After all, avoiding fluctuations in those small markets is often more about missing benefits than avoiding risks.
There are many kinds of funds, such as currency type, partial stock type, bond type and so on. Also pay attention to the correlation between the stock market and it. There is a linkage effect between markets, and there is a certain correlation between stock market and base market. If you choose a partial stock fund, you need to pay more attention to the stock market. If you choose a bond fund, you need to pay more attention to the bond market.
The rise and fall of the fund is related to a basket of heavy stocks of the fund (except passive index funds). Don't buy stocks if you don't know them. You can buy funds if you don't know them. After buying a fund, pay attention to the stock market in order to better invest in the fund.
After reading the above introduction, I believe everyone has a good understanding of whether to pay attention to the stock market trend when buying funds. In fact, the answer to this question is that different people have different opinions. After all, everything in the world is connected.