Have you ever been in such a situation? Funds bought by others have gone up well. Only when you buy a fund can you buy it, and it will fall. Why?

Mainly because of falling into the curse of the fund ranking list and the fund hot-selling list.

When many investors choose funds, they choose a very convenient way to screen funds through fund rankings and hot-selling lists. But why don't these top-ranked funds go up as soon as they buy them?

The ranking data of the fund is based on the historical performance of the fund, so it is difficult for the fund to maintain the top position at any time. Moreover, the market style switches quickly, and we can see that the top-ranked hot-selling funds often stand in the investment wind in the fund ranking. This round of rising performance pushed the fund to stand at the top of the list, and then you bought it when you saw it. At this point, this phase of the rise may soon end. When the market style switches quickly, it will be replaced by other funds.

The changing frequency of performance list is very high. Funds with good returns are generally funds with high shareholding concentration or high industry concentration. This kind of fund is inherently more volatile than ordinary funds, and it is easier to lose money when bought.

How to avoid this situation?

First, avoid hot speculation. If the risk tolerance is relatively low and there is no in-depth understanding of the market and sector, try to avoid investing in hot funds.

Second, don't just look at the fund rankings. When selecting funds, we can select a number of funds by ranking, and then comprehensively compare the data of fund managers, investment strategies, investment styles, maximum withdrawal and so on, and draw a comprehensive conclusion.

Third, establish a fund observation pool. We can usually accumulate some funds, join our own pool of funds, set an observation period, comprehensively judge the performance of funds, and choose high-quality funds from them.