Do you earn more by buying funds or stocks? When the market is good, our expected returns are relatively high. When the market is bad, our expected returns are relatively low.

So today the editor is here to sort out for you whether you can earn more by buying funds or buying stocks. Let’s take a look! When the market conditions are good, do you earn more by buying funds or buying stocks?

When the market conditions are good, do you earn more by buying funds or stocks? Generally speaking, you earn more by buying stocks.

But it is not necessarily true. Although the upper limit of expected returns of stocks is much higher than that of funds, in terms of the probability of making money, the probability of making money by buying funds is greater than buying stocks.

First of all, when the market conditions are good, the probability of a single stock rising is very high, because when the market conditions are good, most stocks in the stock market will rise, and the increase will be greater than the increase of the fund.

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Because the fund's net value will only increase when most of the stocks it invests in rise.

Secondly, when a bull market comes, it will first be reflected in the stock market.

The fund market will not react until most stocks in the stock market rise, so there is a certain delay in the fund market's response to the bull market.

Why is it said that buying stocks when the market conditions are good does not necessarily make more money than buying funds? The main reason is that in the bull market, the probability of making mistakes when buying funds is lower. Funds cast a wide net, while buying stocks is a single transaction.

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Although most stocks will rise when the market conditions are good, there are also a small number of stocks that are not driven by the broader market index and even fall.

If you buy this type of stocks, you may not make money even in a bull market.

In addition, if the growth rate of a single stock cannot outperform the broader market index, then there may not be any fund that earns more.

Although funds generally do not rise as fast as stocks when market conditions are good, there are a small number of funds that rise relatively quickly.

Does the market index have an impact on funds? The market index does have an impact on funds, but the impact is different depending on the type of fund.

Changes in the market index have a direct impact on hybrid funds and stock funds whose investment targets are stocks. Changes in the market index will be directly reflected in stock funds.

However, for currency funds and bond funds whose investment targets are not stocks, the impact is indirect.

How to read the midline buy signal of a stock. The midline buy of a stock is a term used in stock market securities.

This means that investors are prepared to take a mid-term position and hold it for about 2 or 3 months before buying stocks.

The long-term requires a high level of economic knowledge and the ability to analyze and study the long-term development trends of listed companies from a large amount of data, while the mid-term is relatively simple in method and has a higher rate of return.

Common midline buying signals include the following three points: individual stocks' 5-day and 10-day price moving averages, volume moving averages and MACD naturally undergo golden crosses, and the long-term moving average begins to level off; there is a certain degree of change in the general logic of the market, that is, a certain sector

Sexual opportunities are forming; individual stocks have triple bottoms or multiple bottoms, and the moving averages are flattening, showing a long arrangement.