For China's stock market, most people say they can't understand it, as if anything is possible. It is very difficult to predict its trend and beat the market, so I have always adhered to the concept of long-term investment to ensure the continued stability of my investment, but at the same time I still hope to obtain excess returns.
My idea stems from an investment textbook I read, which has a special section: we can take out some funds to buy which funds are not optimistic. This kind of fund belongs to the unpopular fund, but due to the rotation of the market sector, the popular fund will become unpopular in the future, and the unpopular fund may be the next hot spot, which is also the value investment of the fund. These funds generally have low net worth, which is a good time to start, and you can buy such funds at a lower cost.
What is the specific operation strategy?
Take out some funds first, the proportion is not large, generally accounting for less than 10% of your total investment assets. Because the funds are not large, you can calmly deal with the losses of this fund, that is, to ensure peace of mind and rationality, and even regard investing in this fund as an experimental entertainment behavior.
The preparatory work is done, and the next step is to choose the fund. It is not the fund with low net worth that belongs to our choice, but the fund that is accumulating energy can break out in the future. You can go to Morningstar.com, Tian Tian Fund and other comprehensive fund websites first, and screen those whose performance rankings in recent three or two months are significantly lower than the data of the previous year. The deeper the visibility, the better. Then, you can screen out the funds of good fund companies that you are familiar with from these funds, and then apply for and hold them, quietly waiting for the net value to rise a little, and the ranking will rise step by step.
This is actually the idea of value investment, looking for high-quality and undervalued funds. These funds, like buried gold, were dug up one day, wiping off the dust on the surface, exposing the golden surface and blinding our eyes.