First, don’t buy funds based on short-term returns. When selecting a fund, don’t just look at the short-term returns of the fund. If the fund goes up well, buy it, and if it goes up poorly, sell it.

It is normal for funds to rise and fall, especially for stock-biased hybrid funds. It is very normal for the stock market to fluctuate and the fund to fluctuate accordingly.

If you look at the short-term rise of the fund and it is easy to buy, it is very likely that the market has really started to rise. When you enter the market at a high level, the market is likely to be flat or restored, and you will suffer losses during the holding period. Over and over again, you will not make any money.

I arrived and paid a lot of handling fees.

Second, don’t be afraid of high-net-worth funds. The past 2020 has been a good year for funds. Many funds have experienced substantial performance growth, and the fund’s net value has naturally increased a lot. However, most investors suffer from the fear of high net worth.

Even if the fund has a net value higher than 3 yuan, I will not dare to buy it because I think the price is too high and it will definitely fall later.

There is no room for the fund's net value to rise. Whether it can rise in the future is not necessarily related to the level of the net value!

Third, when a certain industry is in the spotlight, don’t buy it when you see that the name of the fund contains

With the word "technology", I rush to buy it for fear of missing out on this market trend. However, when technology themes become popular, it does not mean that technology-themed funds will rise sharply and make a lot of money.

The yield differentiation of technology-themed funds was particularly serious when the industry was in the spotlight in 2020. The highest yield exceeded 91%, while the lowest yield was only 25%.

Comprehensive judgment is the most important when choosing based on your own needs.