Today, a financial friend of the class reader who just invested in the fund suddenly said, "Brother Dacai, actually I found that investing in index funds is very simple, that is, if you insist on buying at the same price, you can buy more stocks and then sell them at a high point, so that you can make a profit." You don't need a fixed investment at all? "

Having said that, many people want to buy low and sell high, so as to make a profit. Isn't that great?

However, if investment funds look for lows and highs like stocks, will intraday trading make money?

Who else can buy the highest and lowest points of the fund every time? The fact is that even Buffett can't accurately predict where the low and high points of the market are and when they will be reached.

And compared with stocks, the investment cycle of funds is longer, especially index funds, which are said to be immortal. Only by insisting on long-term investment can we make money, while people who invest in short-term and buy and sell frequently often find it difficult to obtain considerable expected returns in the end.

Then the question comes to index funds. Is it true that the longer you invest, the better?

In fact, the longer you hold it, the better. Just like you plant a tree and wait for it to blossom and bear fruit, the fund also has its harvest period.

First of all, let's take a look at some data of the fund holding period and the probability of obtaining the expected annualized expected return 10% or more. At first, due to market reasons, we may expect that the expected return in 3-6 months will be much higher than the expected return in one year, indicating that it is of little reference significance for investment funds to look at the short-term expected return.

So at least it depends on the expected return of the fund for 3-5 years. Generally, index funds will have a small peak of expected returns when they are held for 3-5 years, and another peak will appear when they are held for 8- 10 years.

This shows that holding the fund for 3-5 years is a relatively critical time point. If the expected return of this cycle is relatively high, or has reached your expectations, then you can consider selling the profit, at least in batches.

Extend the timeline a little. When the holding time reaches 8- 10 years, the probability of obtaining the expected annualized expected rate of return above 10% will continue to rise, and may even reach the peak of the expected return.

This statistic still has certain reference significance for ordinary investors, which also tells us that if we want to invest in funds, we should at least make plans for not using this part of funds for 3-5 years, so that we have a greater chance of obtaining expected returns.

However, the cycle of industry funds may be longer than that of index funds or shorter than that of index funds. For example, the cycle of real estate and banks is relatively long, while the cycle of technology stock funds with large fluctuations is relatively short.

However, for Xiaobai Investment Fund, it is much more likely to make a profit by choosing index funds for long-term fixed investment. For example, mainstream index funds such as SSE 50 and CSI 300, after long-term fixed investment, the expected annualized expected rate of return can reach 8%~ 10%, which is good for most investors.

If you buy a fund,

Try to hold it for 1 year and a half or even longer, so it is easier to get a relatively fair return.