Fund, in English, refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations. Bian Xiao sorted out how to treat the fluctuation in fixed investment correctly for your reference. I hope everyone will gain something in the reading process!

What is fluctuation?

Sometimes we will mention that a stock is active and a market trend is boring. These expressions all refer to an important attribute of investment products-volatility.

The funds in which we hold positions are sometimes calm and sometimes ups and downs. Whether investors are satisfied with funds with small fluctuations is a matter of opinion, but they are really afraid of funds with large fluctuations.

How does fluctuation affect your income?

Because the buying point in one-time investment is certain, with the fluctuation of the market, the change of the net value of the fund will lead to the change of our income. How do you feel when the market rises, gains a certain income and suddenly reverses, which not only narrows the income, but also endangers the principal? Sigh "The cooked duck just flew away"? Or do you blame yourself for not delivering the package earlier? It's like riding a roller coaster, testing the patience of the holder.

If you invest in two funds separately, you will invest 100 yuan every month in the first seven months and make a profit in the eighth month (ignoring transaction costs). What is the difference between the cumulative income of the two fixed investments?

The calculation results show that the income of fund B with high volatility is much higher than that of fund A with low volatility when the same amount is invested. We can draw the conclusion that, other things being roughly similar, it is easier to make money through fixed investment in a volatile market. It can be seen that in the process of the fund's fixed investment, we will not chase after the market rises, but because the price becomes higher and the share of buying becomes less; It will not be afraid to sell because of the market correction, but will buy more greedily; This completely disciplined fixed investment just helps us to cope with the low and high points perfectly and realize the reverse operation.

In the fluctuation, the fixed investment is "buy less at the top and buy more at the bottom"

The principle of fixed investment is to buy less at a high level and buy more at a low level to reduce costs. Because of the greater volatility of fund B, this effect will be amplified, the cost will be diluted and the final rate of return will be higher.

Because of this, many friends have gained a deeper insight into the fluctuation after starting to vote, and their attitude towards it has completely changed. They will take the initiative to look for products with great fluctuation and flexibility. When the market pulls back or repeatedly grinds to the bottom, the psychological pressure of investment is also small.

In the past two years, the returns of funds purchased by many investors are generally unsatisfactory. What caused the large losses of most funds? Mars, an analyst at Shanghai Securities Fund Evaluation Center, pointed out that, first of all, the essence of fund products is the combination of securities, and the performance of fund income is closely related to the performance of the underlying market. In the continuous decline of the stock market, it is difficult for equity funds and hybrid funds, which mainly invest in stocks, to achieve positive returns. In the case of rising stock market, most partial stock funds can often achieve positive returns. Therefore, it is impossible for funds to create myths and create high positive returns in the continuous decline of the market in recent years.

From the long-term performance, in most cases, the overall performance of funds is better than that of individual investors, especially in bull markets and volatile markets. For example, in 2006 and 2007, more than 80% of equity funds achieved a return of more than 100%, while the proportion of individual investors was less than 20 12 years. Nearly 50% of equity funds have achieved a return of 5% to 30%. According to the survey, more than 50% of individual investors have lost between 5% and 50%. Therefore, the fund is still a good investment tool for individual investors to participate in the capital market.

All kinds of problems, whether China's stock market construction, economic development or asset management industry, can't be eliminated in a short time, and all need the rationality of the market as a whole to promote it. However, as investors themselves, we must measure our risk tolerance clearly and not blindly listen to the propaganda of sales staff. If your risk tolerance is weak, or the funds you want to use in the short term, you can't invest too much in a single stock fund to avoid being greatly affected by the risk of stock market fluctuations. Therefore, for individual investors, it is more meaningful to have a long-term investment mentality, choose appropriate fund products according to their own risk tolerance and renewal, avoid excessive pursuit of popular funds with outstanding short-term returns, pay more attention to funds with relatively stable long-term performance, and spread risks through fixed investment and portfolio allocation to obtain long-term stable returns.

Tip:

First, we should pay attention to arranging the proportion of fund varieties according to our own risk tolerance and investment purpose. Choose the fund that suits you best, and set an investment ceiling when buying partial stock funds.

Second, be careful not to buy the wrong "fund". The popularity of funds has led to some fake and shoddy products "fishing in troubled waters", so we should pay attention to identification.

Third, pay attention to the post-maintenance of your account. Although the fund is worry-free, it should not be left unattended. Always pay attention to the new announcements on the fund website, so as to have a more comprehensive and timely understanding of the funds you hold.

Fourth, pay attention to buying funds, and don't care too much about the net value of funds. In fact, the fund's income is only related to the net growth rate. As long as the fund's net growth rate stays ahead, the income will naturally be high.

Fifth, we should be careful not to "love the new and hate the old" or blindly pursue new funds. Although the new fund has inherent advantages such as preferential prices, the old fund has long-term operating experience and reasonable positions, which is more worthy of attention and investment.

Sixth, we should be careful not to buy dividend funds unilaterally. Fund dividend is the return of investors' previous income, so it is more reasonable to change the dividend method to "dividend reinvestment" as far as possible.

Seventh, we should pay attention not to talk about heroes in the short term. It is obviously unscientific to judge the pros and cons of the fund by short-term ups and downs, and it is necessary to make a comprehensive evaluation of the fund in many aspects and conduct a long-term investigation.

Eighth, we should pay attention to the flexible choice of investment strategies such as steady and worry-free fixed investment and affordable and simple dividend transfer.

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