first, blindly pursue high returns.

When many people go to the bank to buy wealth management products or funds, the first question they ask is: How much is the return? In their view, a 5% return is definitely better than 2%, and a 1% return is definitely better than 5%. If it can reach 2%+, it will be perfect.

the problem is that many people blindly pursue seemingly higher numbers without understanding the definition of return at all. For any investment product, there are only two kinds of returns you can see: historical returns and expected returns. Historical return refers to the real return of the product in the past x years, while expected return refers to the return that managers who invest in the product expect to get. Expected return is the most unreliable, because no institution will guarantee investors that they can get the expected return. If the real return is not as good as the expected return in the end, they will not be punished.

second, buy funds along the fund ranking list.

if I ask you, how to make money in investment transactions? I believe many people can understand the truth of "buy low and sell high". You can only make a profit from any asset if you buy it at a low price and sell it at a high price. If you, on the other hand, buy at a high price and sell at a low price, you will probably lose money.

The problem is that, in reality, many investors just go against the above-mentioned rules, buying at high prices and selling at low prices, without even realizing this mistake. The fund ranking is a typical example.

third, half-hearted, lacking patience.

if you ask the staff of a fund company, a bank or a securities firm, when is the easiest time to improve sales performance? The answer must be: bull market. When the stock market continues to climb, more people will buy funds and wealth management products, and more people will open new accounts to stocks, so these financial institutions will have more opportunities to make money. The reason is simple: everyone wants to take advantage of a wave of gains in the bull market and earn some "money falling from the sky".

In short, the higher the stock market rises in a bull market, the more attractive it will be to those "novices" who didn't speculate in the stock market before, and rush to open an account to buy funds by speculating in the stock market without any investment experience. In the end, it is precisely these novices who suffer the most.

fourth, ignore the investment cost.

suppose a fund manager tells you that if you buy my fund, the expected return may be 2%, or even 3% when you are lucky. But my fund is not free either. You need to pay 2% subscription fee and 1.5% management fee every year when you buy it. Would you be willing?

most investors may not know what the expenses are, or think that they are only 1%~2% anyway, which is just a small amount compared with my expected return of 2%. This completely ignorant or indifferent attitude towards investment costs is another common IQ tax.