Fund management companies pool investors' funds by issuing fund shares, and fund custodians entrust fund managers to manage and use them, and invest in financial instruments such as stocks and bonds to share investment risks and benefits. Today, Bian Xiao will share with you the risk prevention skills of fund investment for your reference only!
"I heard that Lao Wang made a lot of money by buying funds recently." "20 18 the stock market fell to 10 and fell to 2500 points. Should I sell all the stock funds? " Similar sounds can always be heard. Historical experience tells us that investors are easy to chase up and kill down in the process of investing in equity products. They see that others have made money by buying funds, and they also want to invest in stock funds, often chasing the market to buy them. The higher the market, the higher the position. The same is true when the market falls. The more you reach the low point of the market, the more you rush to sell in panic. The result of this practice is that the investment process is constantly chasing up and down, resulting in more and more losses and less and less principal.
Make decisions based entirely on past performance.
It is true that the past historical performance of the fund, especially the active management products, can better reflect the management ability of the fund manager and is also an important reference for investors in the investment decision-making process. However, past performance does not represent a commitment to future investment ability, especially short-term performance, which may often mislead decision-making. This is because markets and industries usually have the characteristics of cyclical fluctuations, which were good for a while in the past and may have the risk of adjustment in the future; The past period was not good, and the future may be reversed.
Investment timing is indeed very important, but what is more important than the timing of entering the market is long-term holding. It is very dangerous to use the thinking of short-term trading to make fund investment, not only because the short-term timing itself is very difficult, but also because the application cost of the fund itself is very high. Frequent trading not only has a high probability of making mistakes, but also produces very high transaction costs, and the results are often counterproductive.
Judging from the history of the past 20 years, funds, as a popular financial management tool, can bring good medium and long-term investment returns to investors if used properly. Compared with direct investment in stocks, funds, as a portfolio investment tool, have relatively low risks; However, Public Offering of Fund, especially partial stock funds, also has certain risks. The market is unstable and the fund is risky. We should not only see the potential benefits of investment, but also bear in mind that benefits and risks coexist!
No product can meet the needs of all investors. Different types of products have different risk-return characteristics, and investors need to rationally choose fund categories according to their own conditions. Just as low-risk investors are not suitable for allocating too many high-risk equity funds, investors with high risk appetite, strong risk tolerance and high requirements for expected returns are not suitable for allocating too many assets to low-risk fixed-income funds. Even for the same kind of products, different funds will have their own styles and characteristics. In the specific decision-making process, investors need to clearly understand the risk level, product category, investment direction and investment style of their selected products.
2. What should I do when the net value of the fund fluctuates?
The stock market fluctuates greatly, and the net value of the fund will inevitably fluctuate. When the net value of the fund fluctuates, investors will make many different choices, some choose to keep holding, and some choose to sell and wait and see. From the perspective of value investment, it is unwise to give up the investment target already held when the price is much lower than the intrinsic value.
The first reason is that timing is a very low success rate. In the long run, it is more valuable to insist on disciplined investment. Investors often see various market views and analysis articles, and then make investment decisions accordingly. These markets have diverse views and different conclusions, and on this basis, the probability of making mistakes in trading is also high. The capital market is complex and unpredictable. If you want to get long-term good returns in the market, you must overcome human weakness and stay away from the dilemma of timing through disciplined long-term investment.
The second reason is that long-term holding may test the mentality of investors, but holding funds with excellent long-term performance will have a higher investment success rate. If there is no problem in the operation, management and investment direction of the selected fund products, although the short-term fluctuations may fall, the future prospects are still bright. On the contrary, if investors think that there is no chance to leave the market in the near future based on their own predictions of market trends, once mistakes occur, they may miss the rising stage. Waiting for the best stage of the market with long-term funds may be a safer and more effective way.
The third reason is that excellent active fund products have excess returns in the long run. According to the data of the fund industry association, from 200 1 to 20 16, the average annualized rate of return of partial stock funds in the whole market was 16.52%, while the annualized rate of return of the Shanghai Composite Index was 7.75% in the same period, and the average annual excess return was close to 9%, with more excess returns of excellent fund products. For excellent products, the benefits of long-term holding are very obvious, which can not only help us obtain long-term high returns, but also be an effective strategy for us to avoid investment losses caused by short-term market fluctuations.
3. What investment methods may help reduce the risk of fund investment?
The so-called portfolio investment means "don't put all your eggs in one basket", which is an effective way to reduce the risk of fund investment. Modern financial theory proves that portfolio investment can effectively reduce the non-systematic risk of the securities market. However, it should be pointed out that portfolio investment is not a simple repeated investment. If investors repeatedly buy multiple products indiscriminately, it will not reduce the risk. A good fund portfolio is not that the more funds, the better, but that the degree of differentiation of fund products should be improved and the number should be appropriate in order to achieve the purpose of diversifying risks.
Buffett has a famous investment saying: others are greedy and I am afraid, and others are afraid that I am greedy. This sentence is about the thinking that investment should be operated against market sentiment. Most people follow the market sentiment in the actual operation process, and this way of thinking is essentially determined by human nature. The market is always fluctuating. In addition to portfolio investment and fund fixed investment, when the market sentiment is depressed, the deduction amount of fixed investment or the position of stock fund should be appropriately increased; When the market sentiment is high, it is also an effective way to avoid the investment risk of stock funds by appropriately reducing their positions.
Whether it is active stock funds or passive index funds, the fixed investment of funds is more suitable for investors who lack investment experience or have insufficient energy to analyze and track the market. Its significance lies in that the risk of market fluctuation can be avoided to some extent through disciplined bulk procurement. The fixed investment of the fund can't help us "bargain-hunting", but it can help us share the purchase cost equally.
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