Fund is a kind of wealth management product that is loved by many investors, but buying a fund is not a simple matter. So what are the common misunderstandings of buying funds? How to avoid it? Xi Caijun also prepared relevant contents for your reference.

what are the common misunderstandings in buying funds?

1. follow the trend blindly. When choosing a fund, some investors only look at the short-term performance ranking and increase, regardless of factors such as the type and risk of the fund, blindly chasing hot funds. It is easy to buy a quilt at a high level, because the market is constantly changing, and today's hot spots may be sold tomorrow. Moreover, different types and styles of funds are suitable for different investors and cannot be generalized.

2. Treat the fund as a stock. Some investors speculate on funds as stocks, hoping to earn the difference through frequent trading. Doing so will not only increase the subscription and redemption costs and transaction costs, but also miss the compound interest effect brought by holding high-quality funds for a long time.

3. I am keen on newly issued funds and always think that they can bring higher returns. But not all new funds are worth buying, and some may have higher risks or unstable performance. Investors should keep calm, fully understand the risks and trading rules of the fund before buying, and judge whether they meet their investment needs.

how to avoid it?

1. Before buying a fund, investors should read the fund contract, prospectus and other documents carefully to understand the investment strategy, risk-return characteristics, fee structure, fund manager and team of the fund. At the same time, it is necessary to compare the performance of funds in different market environments and choose products with stable performance and superior to similar funds.

2. Diversified investment. When buying a fund, investors should avoid putting all their funds into one fund, but choose several different types and styles of funds according to their investment objectives and risk preferences to form a diversified fund portfolio.