The market will not develop in the way we expected. When you choose to leave to avoid market fluctuations, you will inevitably hesitate to enter the market next time.
According to research, many fund investors often suffer losses not from the market, but from wrong fund investment operations. So the question is, how can we avoid these mistakes to the greatest extent?
Myth 1: When the market falls, sell it quickly, and when the market fluctuates, sell it in large quantities. Many investors find that if the market continues to fall, it is easy to panic and redeem funds, and they will never seriously analyze the overall trend of the market.
Market forecasting itself is very difficult, even for an international investment tycoon like Buffett, it is difficult to make accurate forecasts, let alone ordinary investors.
Especially for equity funds, it is easy for day trading to miss investment opportunities and increase transaction costs.
What investors should do is not to redeem the fund in a hurry, but to treat it rationally, such as low-level shocks and short-term fluctuations in the net value of the fund.
Myth 2: If you have a small profit, you want to go. When the market trend turns from falling to rising, many fund investors see that the market is gradually picking up. After a long time, they will make a small profit and leave, and they are likely to miss better opportunities in the future, or they can't wait to redeem their funds because they have successfully solved the problem and made a small profit.
Under such circumstances, what the citizens need to do is not to be eager to redeem the fund, but to be able to strengthen their beliefs and meet more lucrative profits.
Myth 3: The increase is too small. Frequent switching When the short-term increase of the funds they buy is not as good as that of other funds, many people want to redeem the funds as soon as possible and turn to other types of investments.
The actual situation is that different funds generally rise in turn, whether in a rebound or a bull market, so it is normal to have differences in short-term performance. It is normal for some funds to fall behind in the short term. For example, 16, 17, 18, the growth stock funds are all average, but from 19 to 20 years, the performance is very outstanding.
Investors should not use this as the basis for fund redemption. Frequent investment switching may not be worth the loss, which not only increases the investment cost, but also may miss the related rising opportunities.
Moreover, the fund investment itself hopes to obtain market returns through long-term holding. Although the market will fluctuate, it still has long-term investment potential.
Myth 4: Many investors trapped in "disposition effect" have a misunderstanding: "They are more willing to redeem funds with greater returns and temporarily hold funds with greater losses". The so-called "win or lose". Because people are in a state of loss, they are not willing to lose money like this. On the contrary, they would rather take greater risks to gamble.
In fact, those funds that make money for you may be good funds and worth holding for a long time; For those loss-making funds, we can look at the performance in recent years and the changes of fund managers before considering redemption. For example, if the fund manager changes, or the core figure of the investment research team of the fund company leaves, you can also consider redeeming the fund in your hand.
Short-term market turmoil is inevitable. In fact, investors should not care too much about short-term profits and losses. If there is no pressure to spend money in the short term, they might as well be patient.
Compared with paying attention to short-term market fluctuations, we should pay more attention to the retreat and repair ability of fund managers, clearly understand the investment philosophy of fund managers, give outstanding fund managers with strong investment ability and clear investment strategy more operating time, and grasp the long-term return on investment.