I think there are several main reasons:
1 Holding the fund for too short a time.
Although some funds have doubled their net worth in more than a year, most people who hold funds have held them for several months or even only a few weeks. Therefore, during the period when the fund rose sharply, most of the citizens were not in the market and could not enjoy the gains from the increase in the net value of the fund.
My friend stopped the fund after losing 30% a year. A year later, the stock market soared, and the fund he bought rose rapidly, and the net value more than doubled, but it had nothing to do with him. If he can hold the fund for more than two years, he can not only recover the loss of investment, but also get double the income.
Fund investment is a long-term investment process. Historical experience shows that the longer you hold a fund, the greater the probability of making money. Establishing the concept of holding funds for more than three to five years is the key to making money from fund investment.
2-day trading
Many people invest in funds as a habit of short-term trading. Many people like to go in and out of the fund once a week or even once a day, thinking that they can earn more or be safer. In fact, it is difficult for people who trade funds on a daily basis to make money in the end. The intraday trading of funds will not only consume a lot of expenses, but also be affected by various factors. The market changes of funds are random in a short time. Day trading will inevitably lead to a large number of misjudged operations, which will eventually lead to more operational losses.
Basic people should establish a correct investment concept and understand that short-term market fluctuations are unpredictable. Only by truly recognizing the randomness of short-term market fluctuations can we quit the bad habit of intraday trading.
3 chase up and kill down
Many people only like to buy when the fund rises sharply, which often leads to chasing up at a high level. Once the fund market adjusts and falls in the later period, the basic people will panic and cut their meat because of the high purchase cost, leading to high buying and low selling.
The correct posture of investment funds is to buy low and sell high. Buy when the fund market adjusts, and buy more when it falls. Sell when the market rises, and sell more and more. Or buy funds in the stock market or bear market, and sell funds in the bull market, which is right.
And many of our citizens generally buy funds in a bull market or when the market is crazy, and cut meat funds in a bear market or when the market is hot. It's hard to lose money at this rate.
4 high positions
Many of our citizens are afraid to buy funds when the funds are at the bottom of the market, or only dare to buy a small part of the funds. When the fund doubled, many people were attracted by the wealth effect and increased their positions at high positions. As a result, the overall cost of holding the base is too high, and the market will be at a loss if it fluctuates slightly.
The correct position management of fund investment should be to buy more when it falls and sell more when it rises. Or when the fund market is in a downturn, it will be heavy, and when the fund market is hot, it will not increase or even reduce its position. Only in this way can we ensure that we have a lower investment cost and a better investment mentality.
In short, people's wrong investment ideas and operation methods in fund investment are the main reasons for the fund's skyrocketing and the losses of fund holders.