Because for ordinary funds, it is a long-term investment product, which needs to grow steadily through the accumulation of time. Therefore, the funds used for investment funds must be funds other than living expenses and security.
We must do a good job in the four functional areas of funds: security, cash, savings and value-added. We must never use emergency funds to save and add value, nor can we use the money saved to add value.
In addition, there are many types of funds in the market, but not all funds are suitable for fixed investment, so the most important thing is to choose a fund suitable for fixed investment.
1. First of all, select the appropriate type by classification: choose funds with relatively large fluctuations for fixed investment, such as index funds and hybrid funds. These funds will be better than one-time investment, because the fluctuation is large, and the cost can be shared and the risk can be reduced through long-term fixed investment.
2. It is best to operate for more than 3 years. If it is not open regularly, it can be redeemed at any time.
3. Look at the performance of the fund: if you choose to grow steadily in the past year, the income will be better.
4. Look at the fund manager: the maximum withdrawal rate (used to describe the biggest loss that investors may face, the stock base is less than 45%, and index funds follow the index, so you don't need to look at the maximum withdrawal rate), and the frequency of replacement (don't change it frequently).
Buffett has repeatedly advised investors: "Be sure to invest within your own understanding."
Sharpening a knife is not a mistake for a woodcutter. It's best to learn financial management knowledge before investing, and then invest clearly.