I. Long-term holding
All fund companies and most experts are vigorously promoting that "funds should be held for a long time, and only by holding them for a long time can ideal returns be obtained". They belittle and reject band operation, and even compare band operation to evil.
The theoretical basis of long-term holders is:
1. No one can accurately predict the future trend of the stock market. Everyone wants to sell all the funds and stocks at the highest point of the stock market. But do you know where the high point is? Where is the lower point? Often come and go is often the reserve price to sell, the top price to buy. When is the best time to buy and sell? This is really a difficult problem for an ordinary investor. From the perspective of long-term investment, as long as the overall economic situation has not fundamentally changed, timing is not the main issue.
2. Long-term holding and operating costs are low. The purchase and redemption of a fund generally bears the transaction cost of 1.5% to 2. %, which is not a small cost for investors. Long-term holding can avoid frequent transaction costs and even reduce redemption fees, which will give investors more returns invisibly.
The market will not go up forever, nor will it go down forever. The investment cycle is like the alternation of cold and summer, which will be repeated in the short term, but the long-term growth trend of the market will not change. If you pay too much attention to the short-term effect, you will miss the profit opportunity. We should see the sustainability of net growth and build long-term investment confidence. We can neither be tempted by short-term gains nor intimidated by temporary risks.
4. Whether at home or abroad, there are a lot of examples and historical data to prove that long-term holding is the trick to make money for fund investment.
Dual band operation
Although fund companies and some experts have long been anti-propaganda, they have not been recognized by everyone. Please look at the following arguments:
"Although the fund is a" long-term "investment and financial management tool, the practice that has been held since it was bought may not be completely correct. Under appropriate circumstances, some band operations are also feasible. Investors who have been holding funds without making any adjustments, in addition to excessive pursuit of income, the pursuit of "long-term investment" is also an important reason. In recent years, with the development of financial market, the concept of "long-term investment" advocated by some institutions has been widely circulated. However, the ups and downs of the market have fully proved that long-term financial management without any adjustment is not entirely worth promoting. Of course, when we say that funds can operate in bands, we don't mean that the concept of long-term investment is wrong. For more investors, it is very necessary to adhere to the concept of long-term investment. At the same time, the band operation of the fund is not suitable for everyone and needs specific conditions. First of all, band operations should be combined with their own financial goals. The financial objectives mentioned here mainly refer to financial benefits. Before investing, you should set a goal, and when you reach this goal, you will stop making profits. After the market runs for a period of time, you will find the right time to buy. Secondly, band operation should have strong market forecasting and judgment ability and rich investment and financial management experience; Third, band operation requires investors to have more time to pay attention to the market.