After the year, the net value of the fund fell sharply, which made many fund friends lose confidence in fund investment. In fact, market fluctuations are normal. If we look at investment from a longer-term perspective, we may find differences. Today, Bian Xiao will share with you how to deal with the plight after the collapse, for your reference only!

Should the fund be safe in the face of floating income?

I believe this is the worry of many fund investors, and it is also the source of anxiety in the process of our fund investment. Theoretically, the fund chooses to redeem after making money. Unless the fund has other uses, we need to consider the issue of reinvestment. If the market continues to rise in the future, investors are likely to buy back funds at a higher cost, which is what we call chasing up. Therefore, regardless of whether the fund has a floating profit or not, let's return to our investment goal. If this fund is used for long-term investment, and we have strong confidence in this fund product, then try to avoid additional operations and increase import and export costs. The long-term income of the fund comes from the growth of corporate profits. This also means that as long as they are convinced of the long-term growth of the domestic economy, excellent fund managers can obtain sustainable excess returns through active management ability. Then we can enjoy the lever of "time". The longer we stick to the right path, the greater our gains will be. Of course, different investors will have their own different investment arrangements. If this fund meets our pre-set rate of return expectations and investors have short-term demand for funds, then they can choose to leave the bag for safety. However, such investors also need to truly understand their risk tolerance, and avoid losing their "sense of gain" because the market continues to rise after redemption, resulting in frequent timing errors.

Should we sell the fund in the face of losses?

The decline in the net value of the fund is not the reason for us to sell the fund, but to return to the fundamentals of the fund, re-examine our investment objectives and make a decision. First of all, we need to analyze whether the reason for the decline of funds is the lack of investment ability of fund managers or market reasons, which needs to be observed from a relatively long-term perspective. We think it should be given an observation period of at least one year. If the fund manager's investment ability is poor, which makes the performance during the observation period worse than the similar average or market benchmark, we have no confidence in the fund manager, so we might as well choose redemption. If only because of the market decline, the release of systemic risks often provides safer investment opportunities to a certain extent. Don't sell funds when the market is depressed. However, if the decline in the net value of the fund has made us sleepless, then we should have bought a product that is higher than our risk tolerance. At this time, you can consider lowering the position or adjusting the fund. On the one hand, we can reduce the volatility of net worth by adjusting stock funds to hybrid funds or adjusting hybrid funds to bond funds. On the other hand, it may be that we bought products with relatively concentrated positions, which have risen particularly well in the past two years, but the centralized holdings have also dropped sharply in the face of market correction. We might as well adjust our position to some products with more balanced styles.

The net value has fallen. Can you choose to increase your position?

Professional institutional investors, such as fund managers, admit that timing success is very difficult, especially for ordinary investors. We are all familiar with the wisdom of investment. We are afraid when others are greedy, and we are greedy when others are afraid. But in the actual investment process, we always overestimate our risk tolerance, and there is no real reverse investment. On the contrary, most investors chase up and down, resulting in investors' real rate of return is not as high as the fund claims, or even losses. Therefore, we might as well adopt a disciplined investment method and invest regularly every month. The advantage of diversifying investment time is to keep our investment cost at the average cost for a period of time and avoid buying at the highest point in the market. In the meantime, if the market falls, fixed investment will help us to increase our positions and buy more fund shares. We don't need to spend more energy on market judgment, but choose funds with excellent fundamentals to help us cross the bull-bear cycle and obtain good and stable medium and long-term returns.

Choose a new fund or an old fund?

Investors need to correctly understand the advantages and disadvantages of buying new funds, and choose carefully in combination with multiple factors. Many investors buy new funds because of the consideration of purchase cost, but the new fund with a face value of one yuan does not mean that the old fund with a net value of more than one yuan is "cheap". The lower the net value of the fund, the cheaper it is, which is essentially different from the stock price. The price of a stock depends on the price people are willing to pay. Investors can decide whether the stock price is overvalued or undervalued according to the profitability and cash flow of listed companies. The price of the fund is based on the value of the investment position divided by the share, which has nothing to do with how much investors are actually willing to pay for the fund, and has nothing to do with the future upside of the fund.

If an excellent fund manager's investment ability is recognized, and the strategies of the new fund and the old fund are consistent, then buying the old fund managed by the fund manager may be a good investment choice. After the establishment of a new fund, there is usually a opening period of about 6 months. Although the specific opening time and market are decided by the fund manager after comprehensive consideration, if the opening time happens to meet the upward stage of the market or the short-term high point of the stock market, the new fund may not have more advantages than the old fund. Of course, if the new fund encounters a continuous decline in the market during the period of opening positions, in theory, the fund manager can adopt the strategy of slowly reducing positions, which can reduce the cost of opening positions to a certain extent and have an advantage over the old fund in net value performance in the short term. But in any case, from the perspective of long-term investment, "new" and "old" are not considerations for buying funds, but whether we believe in the investment ability of fund managers.

How do investors who pursue steady returns choose funds?

Before buying a fund, ordinary investors may wish to ask themselves five classic questions to see if they have established a perfect and clear investment cognition before buying a fund. How did the fund perform in the past? How risky was the fund in the past? What does the fund invest in? Who manages the fund? What are the fees charged by the fund?

How did the fund perform in the past?

Look at the fund rating and lock in the investment varieties of Samsung and above for three years. It is meaningful to compare the star ratings between similar funds. Star rating is an evaluation of the investment management ability of fund managers in the past, and it is the first step in selecting funds. Investors sometimes look at returns. But should we pursue the funds with the top three annual returns? The answer is no, the top three funds last year often concentrated their risks on a certain sector or some awkward stocks. When the market style is reversed, the fund's untimely position adjustment can easily lead to a big retreat in performance. This investment strategy is not suitable for mass investors. Compared with sprint champions, we prefer winning generals. For example, there are not many funds that can rank in the top half or one third of their kind every year and have good performance persistence, and these are the objects we should really pay attention to and study.

How risky was the fund in the past?

Investment is risky, and so are some funds. Two funds with the same rate of return may have different attractiveness because their volatility may be different. We usually use the standard deviation to measure the volatility of funds. For investors with low risk tolerance, try to choose low volatility or low volatility products, which means that the fund's net performance is relatively stable.

What is the scope of fund investment?

To have a reasonable expectation of the fund's income, we must know its investment portfolio, that is, what securities the fund invests in. They can simply buy stocks or bonds, or both; You can invest in stocks of well-known large companies or in small companies that are not well-known; Fund managers can favor value stocks or invest in growth stocks. Therefore, we need to study the investment portfolio of the fund carefully to understand the investment strategy of the fund manager. In Morningstar's fund rating system, the portfolio is analyzed through positions, industry classification, Morningstar investment style frame and other items. Choose an investment strategy that you can understand and conform to your preferences.

Who manages the fund?

The fund manager holds the investment power and has a decisive influence on the performance of the fund. So when choosing a fund, you must know which fund manager is giving orders and how long his term is. You should choose a fund manager who has experienced the bull-bear cycle of the market and obtained good and stable income. Such fund managers have more mature investment concepts and pay more attention to risk management and control.

What is the cost of buying a fund?

Funds may not make money, but they must pay fees. When accepting professional financial services, investors must pay one-time fees, such as subscription fees and redemption fees, as well as annual operating expenses management fees and custody fees. If the cost is too high, it is definitely not worthwhile. Therefore, before buying a fund, you can get the answer through a financial consultant or a fund company.

In investment, we should not rely on "good luck", but on the correct investment concept, stable and sustainable investment methods and the most important "role" in investment. Therefore, perhaps most people do not have professional investment skills, but the fund itself is a professional person doing professional things. What we have to do is to believe in specialty, value investment, fixed investment and long-term investment. This is not only the fund investment advice of 202 1, but also our life-long investment guide.

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