Do you feel that when the market goes up, the fund you bought can't run, and when the market goes down, your fund falls harder than anyone else? Finally, I returned to my fund and lost money in less than two days. What is the reason? Today, Bian Xiao will share with you why your fund is rising slowly and falling fast, for your reference only!
Why does your fund go up slowly and fall fast?
1, the continuous small increase is unhappy, and the big drop destroys everything.
When the fund rises from 1 to 2, it needs to rise by100%; From 2 to 1, it only needs to fall by 50%. Therefore, the same fluctuation range, due to different cardinality, will have a very different impact on the absolute value of net worth and income.
And the greater the loss, the greater the increase in the demand for return. For a simple example, if the loss is 5%, it needs to increase by 5.26%, and the loss is 10%. The loss needs to be increased by11.11%,and the loss needs to be increased by 30% and 42.86%. If the loss reaches 50%, it needs to be doubled to recover.
In other words, the greater the retreat, the harder it is to return to the original. If the loss range is within 10%, the probability of continuing to hold and wait for the return of funds is much greater than the probability of losing more than 30%.
So, don't be too happy about the previous increase. As the base becomes larger, the same decline will also bring more terrible losses! And if the previous loss is large, the same increase will not make you return to your original. So you will find it easier to lose money than to make money!
2, chasing up and buying, the cost is too high
If you have laid out in the bottom area of the market, and you can hold back the "chicken frozen" hand for N consecutive days, then with a period of income accumulation, in the face of short-term fluctuations, you can achieve capital preservation in most cases.
But many inexperienced investors, one positive line changes their mood, two positive lines change their minds, and three positive lines change their beliefs. The market has risen for several days in a row, and it is easy to have the illusion that "the bull market is coming again", so follow suit and buy. There are not many fund shares held in the early stage, and each subsequent chase will increase the cost, and the building will easily fall, and once it encounters a callback, it will easily lose money.
Chasing up at the same time means missing some rising trading days. The decline in the last day or two exceeded the sum of the gains in the previous n days. In addition, the cost of chasing up in the process of rising is getting higher and higher, which is bound to be the last quilt. This is also an important reason why retail investors lose money in the bull market!
You may have bought a depressed fund.
Many investors take the Shanghai Stock Exchange Index, Growth Enterprise Market Index and other market indexes as the criteria for judging the ups and downs. However, if the index goes up, it does not mean that the funds you hold will go up. Each stock fund has its own different style, heavy industry and selected stocks. If other sectors go up, your fund can only watch the fun, but when it goes down, your fund's heavy industry will lead the decline, so as time goes by, your losses will get bigger and bigger!
For example, the recent strong pro-cyclical growth of non-ferrous metals and coal has pushed up the index, while some mainstream industries, such as the pharmaceutical sector, the consumer sector, and the technology chip semiconductor sector, have undergone substantial adjustments, with two days of floating losses and one month of positive gains.
If the heavy position industry of the fund you bought has not performed well recently, you need to take a good look at the position fund at this time and sell the stop loss in time if necessary.
4. No matter how excellent the fund is, there will be floating losses.
I believe that many investors who choose to buy funds are holding the original intention of long-term investment. However, after a large amount of one-time investment, it is inevitable that you will always pay attention to the market trend, laugh and cry, and personal emotions will be tied to the market. Suffering!
However, investors need to realize that no matter how excellent the fund is, it is impossible to keep rising. It is the most normal thing that there are floating losses in the investment process, and persistence is the key to success.
In addition, from the perspective of behavioral finance, the pain caused by loss is four times that caused by the same gain.
Therefore, the objective mathematical relationship is superimposed with subjective asymmetric psychological feelings, which leads to our unhappy investment path in many cases. I'm afraid it's even harder to make funds as easy to rise and fall as weights.
How to deal with the slow rise and rapid decline of funds
In fact, our A shares often suffer like this. I can't hold it for months. It was red last month, and you will lose blood in two trading days next month.
Therefore, don't prejudge the market, let alone take heavy positions, or even gamble with Man Cang. Nine times out of ten, you will not succeed. Even if you are lucky occasionally and succeed once or twice, as long as you don't leave, you still have to pay back the principal with interest. Opportunism is not desirable, and long-term stability is the right way.
1. Face up to short-term fluctuations with a long-term perspective.
Even if we have the right investment attitude and don't want to be fund speculators, the decline in good returns will inevitably make us depressed. At this time, "cultivating the mind" is really an essential step.
In the process of investment, we always anchor the high point we have reached, and then we have been experiencing losses, so it is easy to sell emotionally during the retreat and when the previous income comes back.
The short-term plunge does bring great impact to the stock market, but it will not affect the long-term upward trend of the market. For many industry leaders, the short-term plunge may be a good time to add positions.
Don't be fooled by short-term shocks. When you choose to buy, you should trust your own judgment and ask yourself why you decided to buy. There are good reasons, so don't doubt your choice.
Graham, the father of value investment, compared the short-term performance of the stock market to a voter and the long-term market to a weigher, which is also true for fund products to a great extent, except that the long-term trend of enterprise stock prices reflects the value creation ability of enterprises, while the long-term performance of funds not only benefits from the value appreciation of listed companies, but also reflects the fund manager's stock selection ability, so the net value of funds is a weigher of the fund manager's long-term investment ability. So good products must be firmly grasped.
2, learn to combine configuration
If you have both consumption and medicine growth style funds and cyclical funds such as nonferrous metals and coal in your position, your recent income will not be ugly, so portfolio allocation is very important.
Stocks, funds, wealth management, gold, real estate and insurance all need a balanced allocation. Don't put eggs in one basket. Reasonable combination and allocation often help to better cross market fluctuations.
If you are a fund, you need to balance stocks, debts and industries. That is, stock funds and bond funds are combined, and stocks and bonds are balanced. Bull stocks account for more than bonds, and bear market bonds account for more than stocks. The industry can adopt the "core satellite" strategy.
In addition, we all know that "eggs can't be put in the same basket" in investment, but we don't know that the buying time of fund investment should be properly dispersed. Don't rush to invest in a fund, buying in batches can play a good role in sharing costs. For a good base, if the income drops or even falls due to market sentiment fluctuations, it is likely to be a good time to add positions. At this time, if you have no chips in your hand, you will miss the opportunity to reduce costs.
3. Check your fund regularly.
Annual and quarterly income, ranking stability, long-term income and performance in different market environments are all worthy of attention. Maybe you haven't noticed that some funds that create stable income for investors for a long time are often invisible in short-term rankings, which is why we pay more attention to performance and ranking stability.
For retracement, not all fund managers attach importance to controlling retracement. There are also few funds in the market that can keep rising under the condition of controlling the retracement. Although controlling the retracement can bring better feelings to investors, some fund managers will think that it is not so cost-effective for long-term optimistic companies to spend a lot of time and energy to judge and deal with their short-term changes.
Investment is for the future. Pay attention to flexibility when choosing a fund with a large increase in the future. Generally speaking, the greater the elasticity, the better its performance when the market rises. The fact is just the opposite, so we should keep in mind that the profit and loss are the same. While chasing good funds that will rise in the future, we should also pay attention to our risk tolerance.
From the long-term data, even for products with little difference in performance, there are indeed differences in retracement. For investors, whether to recognize these differences and choose to make their investment feel better is a matter of different opinions.
Look at the fund and look at yourself. "Examining yourself" mainly refers to examining your own buying reasons and expectations of investment results. We all know that when choosing a fund, we should choose a product with stable long-term performance, but after buying it, we hope that it will not only rise every day, but also rise better than other products. It's like forcing a marathon runner to run the 100-meter sprint in Liu Xiang in every race. It's really hard for the other side. So more often, we need to correct our unrealistic investment expectations.
To sum up, short-term market fluctuations are inevitable. In addition to the factors that are not suitable for market style switching, many fund managers insist on their own investment logic. In the short term, they may not keep up with the market rhythm, but in the long term, their performance is still excellent. Therefore, investors should choose a fund manager who suits their own style. Don't invest too much at one time, you can make a fixed investment plan, form an investment law, and adjust according to changes in the market, capital and yourself. As long as it is a good fund, it is worth holding firmly.
The meaning of fund
Funds can be divided into broad sense and narrow sense. Broadly speaking, they refer to a certain amount of funds set up for a certain purpose, such as trust and investment funds, provident funds, retirement funds and so on. In a narrow sense, they refer to funds with specific purposes and uses. Usually, funds mainly refer to securities investment funds. The income of securities investment funds comes from the future, and the performance of the income is inseparable from the performance of the investment target market, which has certain risks.
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