Funds belong to wealth management products. People buy funds mainly to make money through investment and financial management. They are more or less happy to make money, but most people complain that they always lose money after buying funds, and they simply don't understand what the problem is. Let's take a look at the various reasons for losing money by buying funds with Bian Xiao, hoping to help everyone!
How is it that you always lose money when buying funds?
First, there is no careful screening of funds.
Which one is pleasing to the eye, or which one is better, or even which one is recommended by others. Most of these will lose money. Buying a fund must be screened according to the screening indicators, mainly depending on the historical performance of the fund, the historical record of the fund manager, the maximum withdrawal rate of the fund and so on.
Second, frequent operation.
Sell at the first sign of trouble, or buy with the wind. If you accidentally miss the trading days with the highest increase, the investment income will be greatly discounted, which is why even if you choose a good fund, the income is not much.
Third, there will be no stop loss.
Taking profit in time can avoid accidents, and stopping loss in time can avoid more losses. After buying a fund, you must set a stop-loss and profit-taking point in your mind. Most of this stop-loss and profit-taking point is set within 30%. When the market is bad, it can be set at around 10%. Sell it in time at the stop-loss and profit-taking point.
Four, staring at a fund
Everyone knows the reason not to put eggs in one basket, but in practice, many people either buy only one fund or buy multiple funds, but they can't achieve effective diversification. This is either excessively dispersed or seemingly concentrated.
Fifth, the timing of buying and selling is wrong
It is an eternal truth to buy low and sell high, so when buying a fund, try to buy it at its low level, not those funds with low net worth, but to see whether its current net worth is in a lower position through the historical net worth of the fund. If there is, buy it. If it is in a higher position, don't buy it. It's easy to buy at the top of the mountain.
It is normal to lose money by buying funds, but if you buy a lot of funds and lose money in the fund market for a long time, then you need to change your personal investment strategy. Either you are not suitable for investment and financial management, or your investment strategy is wrong.
Various reasons for losing money by buying funds
Reason one: the fund portfolio is unreasonable.
Some investors like to buy more than one fund when they buy funds. They think that buying funds can spread the risk of funds, but they all buy the same type of funds, and the stocks with heavy positions are the same. In fact, they can't achieve the purpose of diversifying risks.
Reason 2: They all invest in high-risk fund types.
There are different types of funds, and different types of funds have different benefits and risks, among which the risk of money funds is very small. If you buy a money fund, the possibility of loss is very small. If you buy stock funds, hybrid funds, index funds, etc. , are all high-risk fund types. Buy more, the risk is greater, and the possibility of loss is greater.
Reason 3: I don't understand the fund.
Although the fund's past income is positive, such as the past month, the past three months, the past year and so on. The fund will go up and down every day. If it is a fund with relatively high risk, it will basically fall, just saying that a good fund will rise more and fall less.
Reason 4: blindly follow the trend
See which fund has a good rally, high heat and many buyers, and it will follow suit and know nothing about the fund. This is easy to cause losses, because funds with good rebound, high heat and many buyers are popular, but buying at high points may also be risky.
Why do retail investors buy stocks/funds without making money?
On the surface, the stock market is almost a zero-threshold trading game. /kloc-citizens aged 0/8 can participate. No academic requirements, no written interview, no appearance requirements. As long as they have stock accounts, they can trade quickly. It looks very simple.
But the other side of this game is cruel and bloody. The probability of seven losses, two draws and one profit is not made up out of thin air. To become a real profit-maker, you must cross extremely high obstacles to achieve it.
As a diversified investment tool, buying a fund is equivalent to investing in different financial products.
Most foundations buy stocks, bonds, short-term bank deposits and other different products at the same time, with different proportions.
The model looks novel, but it has a history of 100 years abroad.
Celebrities and famous artists in the industry, such as crucian carp crossing the river, are mostly active in the investment front line.
Investment funds have only become popular in China in recent years, and most of them are inexperienced retail investors.
It is very difficult for new players to become famous in a field where talents have been abundant for many years.
It is very clear to compare the e-commerce industry that we often contact.
In just a few years, Pinduoduo can forcibly carve up a large part of the e-commerce market and compete with JD.COM and Taobao in price wars.
It is not that e-commerce is easy to do, but that this track has only developed for less than 20 years, and the rules and users have not been fully understood by old players. New players will have the opportunity to find another way to overtake in corners.
On the other hand, it is difficult to find a company that rises strongly in the short term and comes from behind in hundreds of years of old industries such as real estate and steel.
Don't real estate and steel infrastructure make money? Absolutely not, hundreds of billions of market value is not a decoration!
The main reason is that the rules and routines have long been thoroughly played by old players, and there is no room for drilling, thus forming a high entry threshold and monopoly mechanism. Novices can't survive at all, let alone compete.
By the same token, it's not that investment can't make money, but that trick that novices can think of, and old drivers have long been tired of playing.
As far as I know, many friends who study finance are studying how to cut more retail investors' money through quantitative trading.
On the contrary, those white people who are in a steady stream and don't know the truth have "died" one after another, which is exactly what professionals from all walks of life hope.
Leek is fresh and ignorant. Who will you chop if you don't chop?