Is the annual income of the fund 20% high? In a bull market, it is normal for a fund to double every six months. In a bear market, it is a good thing for funds to achieve positive returns. Due to the different market environment and fund types, it is not possible to judge the level of fund income only from the perspective of specific rate of return. If you give a specific environment, it will be much easier to say. For example, in 2020, is the annual yield of partial stock funds 20% high? Then I can give you a definite answer. First of all, 2020 is a big year for fund harvest. The performance of many funds has doubled, and the 20% return is definitely relatively low in many funds.

But if you ask, the long-term average annualized income of a fund is 20%, is this income high? I can also answer you for sure that this is a fund with excellent performance. In the case of long-term average, the annualized income of partial stock funds is around ten points.

In the actual investment process, what we should strive to achieve is not the amount of target income, but to insist on not losing money and getting positive income every year, so that investment can get long-term stable income. As Buffett said, the first principle of investment is to keep the principal, and the second principle is to remember the first one. It sounds simple, but it is very difficult to really do it.

Therefore, instead of pursuing high returns, it is better to do your homework before investing and set reasonable expected returns. This expected return pursues a fuzzy and reasonable interval, rather than an accurate burden like 1 annual turnover 1 times.

When the market is booming, investors are in high spirits. On the contrary, when the risk gradually increases, the first person has already had a big meal, and the later person is in danger of "taking over" at any time. If the market is facing adjustment, resulting in losses, we must first examine the existing positions. If the "fundamentals" have not changed, waiting is a better countermeasure.