Since May, the focus of the investment circle has been Ye Fei's "self-destructive" report, which once made "market value management" a topic of discussion. The so-called market value management is not to cut leeks, it is a formal behavior. Enterprises will have some capital operation requirements for their own image or to facilitate future financing. For example, the repurchase of shares by a listed company itself is considered a form of market capitalization management.

But the news that Ye Fei broke this time is that there is insider trading and profit trading, which is no longer a formal industry behavior. On May 15, Ye Fei said in an interview that his employer only gave him a deposit of 100,000 yuan, and the balance was not shown according to normal procedures. The agent holder carried out the acquisition in Ye Fei's favor, but the trader Pu Feidi did not control the market, and the agent holder became the taker. Not only did the stock price not rise, but the stock price continued to fall.

In the end, I tried to recover the money but failed. As a result, dozens of companies were hit. In addition to the original Zhongyuan Home Furnishing, 18 companies including Longi Machinery, Visionox, Oriental Fashion, Jinchuang Group, and Huayu Mining were affected. This shows how chaotic the internal transactions of the fund are.

Can young people still buy funds?

According to the "2020 China Shareholder Behavior Annual Report", 43% of people born in the 1990s are more willing to invest in funds. The "China Household Wealth Index Report" further confirmed that in 2020, more than half of the new Christians were born in the 1990s. Young people have contributed a large amount of assets to the fund market. In 2020, the issuance scale of my country's public funds will reach 3.16 trillion yuan, and the total scale will exceed 18 trillion yuan, setting a record high.

The main reason is that funds are easy to buy. For example, these people initially purchased the "Ten Yuan Fund" on Alipay. So, did the people who purchased the Alipay Fund make any money?

Recently, the "First Quarter Fundraising Report" released by Alipay Wealth Management Platform shows that as of 2018, only 41.2% of investors have made profits since their investment, and 6.5% of investors have made profits exceeding 30%. It can be seen that most people who buy funds are losing money.

Is it really difficult to make money from fund investment?

Among all types of funds, stock funds are the most difficult to make money. Because stock funds need to invest most of their funds in the stock market, and the stock market is a market where it is relatively easy to lose money. However, among the current more than 1,400 open-end stock funds, more than 1,200 have made profits since their establishment, accounting for more than 85%, and less than 15% have lost funds.

The Alipay report also shows that from 2006 to 2020, some stock fund indexes rose as much as 1,295%, with an average annual return of more than 19%. Therefore, various evidence shows that the main reason why investors cannot make money when buying funds is not the fund, but themselves.

The easiest way to lose money in fund investment is to step on these pitfalls

Use funds as stocks and buy and sell frequently

According to the report , those who bought funds and held them for no more than 3 months lost more than 70% of their funds, with losses ranging from 5% to 58%. For those who have held it for more than 3 years, the loss ratio is less than 5%, and more than 95% of people have a profit of more than 5%. Many people were bearish for two days and were eager to sell. After selling low and buying high, tears became the last stubbornness of the leeks.

Paying too much handling fees

As we all know, the handling fee of a fund is definitely a cost that cannot be ignored because it is indeed very high. For example, the subscription fee for stock funds is 1.5%. If it is held for less than 7 days, it can be redeemed at a redemption rate of 1.5%. If you buy and sell four or five times a month, the handling fee will be 12%-15% of your assets. How else to make money?

The reason why many funds are profitable may be because they rely on handling fees. Because the fund's subscription fees and redemption fees will be included in the fund's net value and become part of the fund's assets. At the same time, this is equivalent to giving money to other investors who hold the fund.

If you buy it all, you will never have a chance to turn around

When some people buy funds, they buy them little by little. After watching the market rise for several days, I felt that my IQ was online, so I bought all the money at once. You must know that if you want to make it perish, you must first make it crazy. Even if others make a lot of money, you must hold back one hand and leave part of the money to resist risks. Even if you are stuck for a period of time, as long as you still have money in your hand, you still have the opportunity to cover your position and reduce costs.

The stock market is risky, so be cautious when entering the market. Insider traders like Ye Fei have fallen into the "trap", let alone those tricks like recommending stocks in WeChat groups, because there will be no pie in the sky. Regarding the self-explosion of "Ye Fei Concept Stock", some netizens called for Ye Fei to be exonerated as a tainted witness, provided that all the crimes and criminal figures he knew were fully explained, which is also a good thing for the progress of the capital market.

What do you think about this? Have you bought funds on Alipay? Did you make any money?