The short-term ups and downs of the fund cannot predict the future. "Chasing up and killing down" always pits itself, so how can we pay attention to the hand that chases up and kills down? At this time, we need to use external forces to help us hold it for a long time. Bian Xiao compiled here how to avoid chasing up and down when the net value of the fund fluctuates, for your reference, and I hope you can gain something from reading!

Decentralized configuration reduces risk.

When every small partner buys a fund, he swears: I must hold it for a long time, but everyone's risk preference and psychological endurance are different. In a volatile market like A shares, the fluctuation range of the market may break through the psychological endurance. Once we break through this expected bottom line, we will often make wrong decisions and panic selling. Therefore, before buying a fund, you must first cultivate your internal strength.

First of all, we must understand the risk characteristics of funds. Why do funds fluctuate greatly? What industries and stocks did it buy? For example, Nuoan Growth mentioned yesterday is a typical science and technology theme fund and the leader of heavyweight semiconductors. Its share concentration is very high, it invests in the same sub-industry and is also concentrated in a few stocks. When the technology sector is not performing well, it is not surprising that Nuoan's growth performance is at the bottom.

Secondly, it depends on whether you can tolerate the fluctuation of this fund. For the small partners who buy theme funds, they must have a big heart. When the industry is not in the limelight, they have to endure the short-term poor performance of the fund and the sharp fluctuation of the net value. If you can't stand high volatility, you'd better not buy theme funds.

So how do you determine the maximum fluctuation you can bear? The simplest thing is to do a decompression test. In the case of Man Cang, how much decline can you bear at most? This heart must have a bottom. If you can accept the retracement of 10%, and if the maximum retracement of the fund is 20% in history, it is best to buy only 50% of the positions at ordinary times, and the remaining half will buy a stable bond fund or money fund.

Automatic investment plan

Excellent investors are lonely, because they always stand on the opposite side of greed, comfort and enjoyment, and fixed investment is such an investment tool that can help us overcome human weakness.

It allows you to stop hesitating about the timing of entering the market, get rid of irrational chasing up and down, and let you pursue your wealth goals and ideals through accumulated temperance instead of hoping to get rich overnight.

The fixed investment of the fund adopts the strategy of "fixed time quota", and the subscription amount of the fund is even: no matter whether the market goes up or down, the fixed time quota fund investment method is adopted.

First of all, it avoids the big problem of choosing the admission time. At the same time, it resisted the pressure of "loss" and bought more chips at a low price when the market was at a low level, defeating most people who chased up and down in this market.

The essence of fixed investment is that fixed investment itself is investment in batches, which weakens timing and ignores market prices. For investors who want to avoid chasing up and down, this kind of investment method is more disciplined, and they have a better chance to reap the relatively average return in the market by investing money in a long stream.

According to historical data and previous experience of fixed investment, because fixed investment is bought at different prices, the fund with greater volatility has better cost sharing effect. Investors can choose to buy index funds or actively managed equity funds with good historical performance.

Choose closed-end funds

As a portfolio, a fund is an investment tool, but whether it is a closed-end fund or an open-end fund, the rules need to set a "degree".

According to the mode of operation, funds can be divided into four types: ordinary open-end funds, holding-term funds, closed-end funds and regular open-end funds. Ordinary open-end funds are funds that we usually buy and sell at any time in trading software. The latter three "closed-end" funds help us quit "chasing up and killing down" by restricting sales, but there are still some differences in specific trading methods.

Holding period funds, taking the three-year holding period as an example. After a period of time, the fund is open for subscription and can be bought at any time, but there are restrictions on selling! Every time you buy a fund share, you must take it for at least 3 years before you can sell it.

Closed-end funds, taking a three-year closed-end period as an example. After the establishment of the fund, the first three years are closed, and it can neither be bought nor sold. After the closure period, it will be converted into an ordinary open-end fund, which can be bought and sold at any time. Simply put, only the new fund will have a closed period when it is issued for subscription.

Open the fund regularly, or take the three-year regular opening as an example. The fund is open for subscription and redemption every three years, and cannot be bought or sold in the rest of the year. For such funds, special attention should be paid to the opening hours. If it is not sold during the opening period, the fund will enter the next closed period and it will take another three years to sell.

Through the restriction of product design, it can effectively help the people to dilute the opportunity and improve the winning rate of making money. Among them, 2-3 years of closed-end funds have a better effect, which neutralizes the advantages and disadvantages of closed-end funds and open-end funds, can effectively avoid the human weakness of investors and give fund managers a relatively complete operating space.

To sum up, the advantages of closed-end funds in 2-3 years are:

1) Mandatory long-term investment. Overcome chasing up and killing down, and harvest the roses of time.

2) The fund scale is stable and there is no big short-term redemption, which makes the fund manager's strategy steady and strive for higher excess returns.

3) The position control is more flexible. There is no need to keep the redeemed cash, so as to obtain better performance.

Of course, the corresponding is to invest with the money of the corresponding period, and short money is not suitable for buying such products.

But the key to choosing an open-end fund with a certain number of years lies in:

1) Look at the strength of the fund manager and give it to the rest assured. Without Jin Gangzuan, we can't make porcelain. We should pay attention to the products managed by fund managers with rich investment and research experience and long-term stable past performance.

2) Look at the strength of fund companies and provide strategic support. No one can beat the market forever, but a hardcore team is more likely to win. We should pay attention to fund companies with large management scale, strong investment and research strength and rich experience in managing similar products.

3) Looking at the timing of investment, the timing of product release is very important. When the market bottom range and valuation are low, it is precisely the gold buying point for the layout of medium and long-term opportunities.

To sum up, if you subscribe for open-ended closed-end fund products managed by excellent fund managers at the bottom of the market, entrust yourself with full authority, hold your hands and wait patiently, you will often get a good return on investment.

In fact, the logic of the fund's rise is traceable, which may be because it has found a suitable market outlet in the short term, or it may be the fund manager's stable investment style and long-term performance.

If it is the former, investors should avoid blindly chasing hot spots frequently, because the market situation is often "feng shui turns", who can accurately grasp the wind direction every time?

If it is the latter, then even if the market fluctuates briefly, the probability will continue to rise in the long run. Instead of frequently changing positions to buy products that you don't know or are not familiar with, it is better to hold them for a long time, make friends with time, and gain a stable happiness.

The follow-up of A-shares may be difficult to predict, but we are one of many high-quality funds, setting a new high in net worth in the volatile market. For ordinary investors, holding these funds that create long-term excess through stock selection will be an excellent way to overcome shocks and overcome the market.

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