The quality of the market conditions will directly affect the expected returns from our investment and financial management. When the market conditions are good, we compare who makes more. But when the market conditions are poor, what we compare is who loses less. So when the market conditions are poor, do funds lose more or stocks lose more? Will all funds lose money? For this issue, we have prepared relevant knowledge for reference.

When the market conditions are poor, do funds or stocks lose more?

When the market conditions are poor, do funds or stocks lose more? Overall, stocks lose more. However, it is not necessarily true that all stocks will lose more money than funds. There are several main reasons.

First of all, when the market conditions are poor, the fluctuations of a single stock are relatively large. The fund is a combination of a basket of stocks, so the fluctuations are relatively small. When the market conditions are poor, most stocks will fall, but the magnitude of the decline of different stocks is different. Some stocks will fall by a larger margin, while some stocks will fall by a smaller magnitude. The magnitude of the fund's decline is an average. value.

Secondly, when we are trading in stocks, we are mostly doing the trading ourselves. Relatively speaking, we ourselves are not very professional. Many investors lack investment experience, have weak execution capabilities of investment strategies, and are greatly affected by their own subjective opinions.

The essence of fund trading is that the fund manager is investing in us. We hand over the funds in our hands to the fund manager, and the fund manager invests in us. Fund managers are relatively more professional. , the news is wider, there is a fund management team behind it to provide technical analysis and guidance, and the investment strategy execution ability is strong.

Finally, when a bear market comes, it will be reflected in the stock market first. There is a certain time difference from the stock market to the fund market. Fund managers can use this time difference to make adjustments to a certain extent. Therefore, when market conditions are poor, stocks will lose more than funds. But when the fluctuation range of a single stock is smaller than that of the broader market index, the stock will not necessarily lose more than the fund.

Will all funds lose money?

Not all funds will lose money when the market conditions are poor. The ones most affected by the stock market are hybrid funds, stock funds and index funds. Monetary funds and bond funds have been relatively less affected.

It is possible that currency funds and bond funds will not only not lose money, but also rise, because when the stock market is in poor condition, people will withdraw their investment from the stock market and invest in the bond market. When the bond market When funds are sufficient, it will drive the growth of bond funds.