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What are the methods for beginners to buy funds?
For some wealth managers, they usually choose the fund first. So, what are the methods for novices to buy funds? There are several ways:

1, fixed investment

Investors can choose to invest in the fund in the process of falling, and share the cost of holding positions by constantly buying and increasing their shares, so as to realize the smile curve effect when the fund rebounds. In the process of investment, there are the following skills:

Choose a fund with large fluctuations for fixed investment.

In the process of fixed investment, investors should choose funds with large volatility, such as stock funds and index funds, which are more likely to produce smile curve effect, while money funds and bond funds are less volatile and relatively stable, which is not suitable for fixed investment operation and more suitable for one-time purchase.

Fixed investment in the decline channel of funds

Investors should choose to make a fixed investment when the fund is in the downward channel and make a fixed investment when the fund is in the downward channel. By continuously increasing the share of positions, they can reduce their position costs, spread risks, wait for the rebound of the fund's net value and realize the smile curve effect. However, fixed investment during the fund's rise will increase their position cost and risk.

Stop profit and stop loss in the process of fixed investment.

In the process of fixed investment, investors can set a take profit position to ensure income. However, the fixed investment of the fund is characterized by long-term, compound interest and average cost. Therefore, there is no need to set a stop loss in the process of fixed investment.

Choose dividends, and then invest in dividends.

Investors can change the dividend distribution method of fixed investment funds into dividend reinvestment, and realize the compound interest effect by increasing the holding share.

2. Long-term holding

Investors can choose funds with great development potential and good historical performance of fund managers for long-term holding. Long-term holding can not only make investors earn a certain price difference, but also enjoy the benefits brought by fund dividends. Long-term holding has the following skills:

Buy a fund with better performance

When buying a fund, investors should look at the historical performance of the fund, not only the trend in the past year, but also the average income in recent years. Try to choose high-quality funds with stable performance for more than three years, and choose funds with higher average performance and benchmark performance.

Buy back funds with low withdrawal rate

The fund withdrawal rate refers to the degree to which the net value of the fund falls from the highest position to the lowest position within a period of time. Generally speaking, the greater the capital withdrawal rate, the greater the capital fluctuation and instability, and the smaller the capital withdrawal rate, the smaller the capital fluctuation and stability.

Reasonable control of positions

When investors buy funds, they should control their positions reasonably and never buy them all. For example, if you buy a 1/3 position for the first time, the fund will fall by 5% and then buy a 1/3 position.