Why do funds make money but fundamentalists don’t?

Funds making money and investors losing money have always been a pain point in the public offering industry. The fact that a fund is making money means that there is no problem with the underlying fund and it is a good fund. So the reason why the experience of the fund investment is not good is actually very important.

The reason is that many investors invest in funds incorrectly.

1. Buy a fund based on performance rankings. There is no problem in understanding a fund based on performance rankings. The problem is that choosing a fund based on its short-term performance rankings can easily lead to buying it too late.

Everyone knows that buying funds depends on performance. Funds that have grown well always attract attention, so many platforms will give rankings of funds that have performed well in the recent past (such as the past month, the past three months, and the past six months) for your reference.

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However, good short-term performance is often due to betting on rising industries and catching up with the trend of the sector. As for whether it can be sustained, it is difficult to say.

Moreover, the funds that rise at the top are often funds that place heavy bets on a certain industry or hot spot. By the time the fund's short-term performance is listed, it is likely that it has already risen to a certain level, and there is not that much room and possibility to continue to rise.

, buying at this time is a typical pursuit of high prices.

2. If the fund you hold cannot hold the Niu Fund, even if it is 10 times the Niu Fund in 10 years, the net value trend will not be straight upward. There will always be a correction stage due to market fluctuations. In particular, some fund managers focus on offense and do not care much.

A retracement will occur when the fund loses money and has a large retracement within a certain period of time. However, in the long run, the fund performance may actually be relatively good. At this time, you need to give the fund time.

A very typical example is Wells Fargo Tianhui managed by fund manager Zhu Shaoxing. Since its establishment in 2005, Wells Fargo Tianhui has experienced a huge retracement. During the stock market crash in 2008, the maximum drawdown reached 59%. In 2018, it plummeted.

At that time, the maximum retracement was 34%, and at this time, how many people can insist on holding it?

But if you can hold on to it, you can get a gain of 1922.67%.

Believe in the fund manager and only if you can hold the fund can you get good returns.

3. Frequent trading Many people regard frequent trading as swing operation.

There was even a "7-day trading method" that was popular before. First of all, the professionalism of most ordinary investors is limited, and they are easily affected by negative trading mentality, such as greed, fear and other psychological influences. Short-term swing operations are very difficult.

It is difficult to accurately determine the appropriate time.