Funds are risky investments. If you invest badly, you will lose money. When buying and selling funds, we need to pay attention to some problems. What are the three taboos for buying funds? The following small series brings three precautions for buying funds. Let's take a look at it together, hoping to bring some reference.
Pay attention to three points when buying funds.
First, don't buy funds blindly.
When buying a fund, some novice investors will buy that fund to see who makes money. In fact, the same fund may lose money and make money, so when buying a fund, you should buy a fund according to your own situation, and don't blindly follow suit.
Second, don't pursue income excessively.
Some novice investors buy funds, but they are too pursuing income. For example, they concentrate all their funds to buy equity funds. Equity funds are funds that invest in stocks, which are very risky. If the market is not good, they may suffer serious losses.
Third, don't buy too many funds.
Some novice investors want to diversify their risks and then buy many funds. In fact, they are all of the same type or plate, and they cannot spread risks. And they need to watch it often, which is time-consuming and laborious. When choosing a fund, you can choose a suitable fund according to your own situation. Generally speaking, it is almost enough to choose 2~5 funds, such as monetary fund+stock fund.
Why does buying a fund fall?
1. The admission time is wrong and the holding time is too short.
Many investors worry about risks in the early stage and choose short positions. When the market continued to rise for a period of time, they could not resist the temptation to run into the market. At this point, risks have gathered. Of course, it is extremely difficult for even top fund managers to choose the best buying opportunity, not to mention that most ordinary investors lack professional knowledge and are easily influenced by market sentiment, trying to "buy low and sell high", but the result is self-defeating, and finally "buy high and sell low".
However, even if the purchase price is too high, a good fund can obtain long-term excess returns. If the holding time is too short, it is difficult to make money. The longer the average investor holds it, the higher the profitability and the higher the average return on investment. The profit probability of holding for 2 years has been stable at over 90%.
2. With the rapid market rotation, it is difficult to realize the expected "betting" switch between large-scale assets.
In the long run, few people can accurately judge the optimal timing and target every time, and the loss caused by a failed investment switch is likely to completely offset the accumulated gains over the years.
If the amount of collective one-time investment is too much, too concentrated on one or two products, and a certain industry accounts for too much in the portfolio, it is easy to lose money. If you choose the most potential fund at the low point, you are likely to make a lot of money later, which is also a typical psychological expectation of speculators. But obviously, most ordinary investors lack professional judgment, luck and courage. Therefore, investors are advised to do two things:
The first is to set your mind. Investing is like planting trees. I believe that time will produce beautiful flowers. If you don't need money urgently, you must hold it for a long time, regardless of short-term ups and downs.
The second is to choose a fixed investment method. Since we can't catch the lowest point, we will buy in batches regularly in the safe area, diversify our investment and share the risks.
Therefore, under the influence of uncertain factors such as market situation and investors' experience, by diversifying investment targets, making a reasonable and scientific asset allocation plan and holding it for a long time, we can minimize fluctuations and obtain maximum benefits within a limited and controllable risk range.
How to deal with the "curse" of the fund falling as soon as it is bought
1, make full preparations before buying, and don't fight unprepared. The soldiers and horses did not move, and the food and grass went first. Look through the historical performance of fund managers, see the management scale of fund companies, and go to the community to talk with other basic people about the experience of holding funds. The background check beforehand can't guarantee that you will buy a good "base", but it can avoid stepping on the mine and improve the hit rate of choosing a base.
2. Assess the situation and make a good risk assessment. After choosing a good fund, there should also be a good opportunity to enter the market. The secret is: not blind, not impulsive, not chasing up and down. At the same time, look at the historical retracement of the fund, look at the previous decline, and assess whether the risk is within your acceptable range.
3. Dilution cost method. After buying a fund, if you really hit the curse of "buy it and fall", there are remedial measures. This requires us to pay more attention to the situation of funds and reduce the cost of holding funds through operations such as fixed investment or low purchase of funds. Take the fixed investment as an example. After the purchase, the net value of the fund decreased. Through a complete fixed investment plan, buying at a low price in the later period virtually reduces the cost of holding positions in the earlier period.
4. Choose fund varieties with relatively small risks. If the above can't help you get rid of the curse of "buying up and killing down", you can consider choosing short-term debt funds and money funds with less risk and more stability as investment targets. Most of these funds invest in relatively safe varieties such as deposits and certificates of deposit, and the probability of "falling as soon as you buy them" is extremely low.
5, no matter how good the fund is, it will fall as soon as it is bought, so don't worry too much. Loss is the most feared thing for investors. However, it is very normal for the fund to temporarily decline after subscription. But as long as you choose excellent active management funds, you don't have to worry too much about the fluctuation of market valuation within a reasonable range. You know, active equity funds are characterized by rising more when the market goes up and falling less when the market goes down. Over time, they will naturally accumulate rich returns.
What type of fund is not recommended?
Generally speaking, it is not recommended to buy a small-scale fund, because if a fund is relatively small, then the profitability of this fund is not good. There are two reasons for the small scale of the fund, one is the loss, and the other is the large amount of redemption by investors, so why the large amount of redemption? You can think about it.
Secondly, the income of fund companies mainly comes from fund management fees. The bigger the fund, the more management fees. However, if the fund is small, it will be difficult to make money, and the fund will face the risk of liquidation.
Two techniques that investors can refer to.
First, don't be superstitious about shrinkage at the bottom. The real bottom is not judged by whether shrinkage is the standard. If you have energy for six consecutive days, you can do more, and you can enlarge it for three consecutive days to judge whether it is the bottom. The sky-high price will be completed in three days, and the land price will be completed in one hundred days. The formation of the bottom is an oscillation that needs to rebound, which is very painful. Don't grab the rebound of the V-shaped bottom.
Second, the confirmation at the bottom requires technical judgment. If it is a stock that oscillates below 20, it is not the bottom component. Morphologically, the bottom will gradually raise the bottom. Both KDJ and RSI indicators are long, with moderate volume at the bottom and long positions in a week. Tips: Don't expect bargain-hunting to be copied at the lowest point, so as not to get stuck again in the next round of decline.