More and more investors have turned their attention to the fund market. What "preparations" do we need to make before investing in funds?
1, don't be afraid of shock.
Before investing, we must first establish our own investment sentiment, and don't be afraid of market shocks, because shocks are the main theme of the A-share market.
Historically, the A-share market is mostly volatile. According to the statistics of Haitong Securities, the A-share market has the highest attendance rate in the past 30 years, accounting for 45% of the time, the bull market accounts for nearly 40%, and the bear market accounts for the shortest, only 17%.
It can be said that the market spent half its time in shock. If you are afraid to invest because you are afraid of market shocks, then you may have been afraid to start.
Don't dream of making quick money.
The fund market is not a place to get rich overnight or make quick money. If you have such an idea, don't invest in the fund market.
Statistics show that since 1990, the bull-bear cycle of A-shares takes 5-6 years on average, while that of US stocks takes 20 years on average. In other words, in the A-share market, the bull-bear cycle changes rapidly, and most investors have the idea of "making quick money" by chasing up and down, but their investment is lagging behind, and then they "enter the market" after the market rises, and they have missed a big wave of rising prices, and the market fluctuates for a long time, which tests their mentality.
When the market is good, a large number of novice investors tend to flood in. In their view, it seems that as long as they enter the market, they can make money quickly. In this way, they are easy to "get dizzy" in the stock market shock. If they think clearly, they can make a wave by timing and run away, but they will lose money if they can't hold the fund.
From June 20 16 to June 20 19, retail investors, institutional investors and corporate investors, regardless of the amount of funds, rely on timing during the period to make negative returns. Therefore, whether for ordinary investors or professional investors, timing is too difficult.
Moreover, the fund is not an investment tool that wins by timing. Fund performance cannot break out forever, the market fluctuates, and the net value of the fund may also retreat. If investors start with funds with high short-term performance, they may not get sustainable returns.
In the fund market, there is a champion curse, that is, products with very high performance in the previous year are basically flat in the next year.
3. Do your homework before buying a fund.
Only by fully understanding a fund can we make a decision whether to buy or not. It is important to know what to buy. The new fund and the old fund have different reference directions.
Funds established before the promulgation of the Interim Measures for the Administration of Securities Investment Funds
Depending on your risk tolerance, the risks of different fund products are quite different. If you are an investor with low risk tolerance, you can pay attention to funds with low and medium risk ratings, such as bond funds; If the risk tolerance is relatively high, partial stock funds and index funds can be considered.
Look at the fund's performance, don't blindly buy when you see high short-term returns, but choose products from a long-term perspective, such as the funds with the highest returns in the same category in the past 1/3 or 1/2 years, and the products with annual returns exceeding the benchmark returns in the past 1, 3 and 5 years.
Look at the fund manager. For active products, fund managers are "soul" figures. See if the investment style of the fund manager is suitable for you, and judge whether the investment concept of the fund manager is clear by combining the product operation analysis content in the fund's previous quarterly reports and annual reports.
New funds
Look at the investment direction of funds. For example, some new funds invest in current policy hot topics. If investors are optimistic about related topics, it is recommended to buy them.
Looking at the fund manager again, although the new fund has no historical performance reference, the historical performance of other products managed by the fund manager can be used as one of the directions for us to judge its investment ability.