In the face of fluctuations, patience may be a better way to invest. Investment is something that needs long-term persistence. Be a friend of time. But few people can really make "long-term investment", and most people have become "enemies of time" rather than friends of time. Today, Bian Xiao will share with you what to do if the fund market fluctuates, for your reference only!

Anti-humanity, stop it

In the face of the rapidly changing market, how many people can manage their own hands, especially in the face of sustained losses in weak markets, it is inevitable that they will be flustered, have doubts about fund investment and eventually leave.

First of all, human beings have a "risk-averse" mood. When paying attention to the factors that may lead to losses, they are more eager to avoid risks than gain benefits.

Secondly, investors have a blind confidence in their knowledge and control ability, and always feel that they can predict the market ups and downs in advance and operate in advance. In addition, there are too many sources of news, too much market noise, and investors' mentality is too impetuous.

Long-term investment is largely against human nature. But in essence, many investors do not have a deep understanding of the value of time, hoping to make the most money in the shortest time and get rich overnight.

Whether you buy stocks or stock funds, you are essentially buying "the value of the enterprise". The stock price of an enterprise may fluctuate with the market in the short term, but it will return to its intrinsic value in the long run.

Therefore, short-term investment is not the value of the investment enterprise, but more likely the component of the game. Pursuing short-term operation and equating investment with speculation have great uncertainty.

However, long-term investment is more based on the recognition of enterprise fundamentals and the consideration of enterprise growth, profitability and core competitiveness. As long as the enterprise is truly excellent, it can create shareholder value for a long time.

If investors buy and sell frequently in order to obtain the spread income of fund net value, it will greatly increase the cost of subscription and redemption, and actually damage their investment income. So, it is important to stop. As long as you walk long enough, there is still the possibility of turning over against the wind.

We also know that day trading will devour wealth, but it is inherently uncontrollable, especially in the face of volatile markets, so we should seek external forces to help us practice "long-term investment".

(1) Fixed investment: Fixed investment by the fund, also known as lazy financial management, may help us avoid certain risks and is an important choice for long-term investment.

(2) Closed-end funds: At present, there are several types of closed-end funds in the market, namely: closed-end funds, regular open-end funds and holding funds. These funds will be closed for a period of time, during which investors cannot purchase and redeem them.

Whether it is a closed-end fund, a fixed-term fund or a holding-term fund, their purpose is to effectively reduce the liquidity impact caused by investors' "frequent subscription", maintain a relatively stable scale, and also help to improve the long-term stability of the fund portfolio and strive for higher returns.

Invest with the "right" money

Fund investment is a long-term process. If you want to hold it for a long time, you must use long-term money to match your risk tolerance. This is the foundation. In other words, the money in the investment fund should be your "long-term idle money", that is, the money you won't need in your daily life in three to five years.

If investors don't invest "idle money", in the face of short-term market decline, they may have to cut meat at a low level for living or other expenses, and they will lose the possibility of covering losses or even benefiting from long-term market improvement.

Of course, different money also has different investment directions, and investors can judge according to two dimensions.

(1) Term matching: If the funds have other uses in the short term, you can only invest in fixed-income products with good liquidity such as money funds and short-term debt funds. The money invested in stock funds must be prepared for at least three years, otherwise the rate of return has not returned to the average level, and the funds are badly needed and forced to be redeemed, which is likely to fall in the darkness before dawn.

(2) Risk preference matching: Choose products according to how much fluctuation and loss you can bear. For rational investors, all money is equivalent. However, investors can also properly manage their funds in separate accounts to establish a portfolio that meets their psychological needs. For example, the future children's education fund can be considered as a low-risk preference currency, and the main investment is fixed-income low-risk assets. The future tourism and entertainment fund can be considered as a high-risk preference currency, which mainly invests in floating income and high-risk assets.

Therefore, only by investing with "correct" money can we avoid being forced to do many irrational operations, which will eventually lead to investment losses or failures.

Choose the right product and get on the right car.

Many friends say that I can use long money for long-term investment, and I can deduct money from fixed investment, but why can't I make long-term investment?

Another reason is to choose the wrong product, which leads to a poor investment experience. We are faced with thousands of stock funds, and we are looking for fund managers with stable style and long-term investment strength.

Because the short-term performance of fund products is often unsustainable, the excess income and ability of fund managers are sustainable. Excellent fund managers have long-term allocation value. At ordinary times, his style is very stable and his investment ability is also very stable. After the baptism of bulls and bears, his investment ability is also very persistent.

However, such fund managers are destined to be scarce. The top 20% fund managers in the market are worthy of our selection, and we must find an investment style that suits our risk tolerance.

For example, if you can't stand the fluctuating growth style, choose a stable deep value style; If you can't stand high-volatility industry theme funds, choose a fund with balanced allocation in the whole market.

To embrace the era of rights and interests, the correct way is to insist on holding the products of excellent fund managers and not be disturbed by market fluctuations. Only those who know how to persist are more likely to reap the last rose of time.

First of all, when purchasing fund products, we should reasonably evaluate our risk tolerance and avoid choosing products beyond our risk tolerance. Remember, the benefits are directly proportional to the risks. Don't be blinded by those high returns. Think about whether you can hold it when it is oversold, and then choose the product that suits you.

Secondly, after determining the categories of investment, if it is a leading fund, we must understand the operating style of the fund manager and agree with his investment philosophy. Because of this, you can better understand the operation of the fund manager and help yourself to hold this fund for a long time. If it is a passive fund, it depends on whether the index has the value of long-term investment.

Finally, we can refer to the historical performance under various market conditions in the past. Although past performance cannot predict the future, it reflects the investment ability of fund managers, so it can be used as a reference.

To sum up, investors' profits are all bought with time. If the fund fluctuates or even falls in a short period of time, as long as it is not the product itself, it is forbidden to stop fixed investment or cut meat for redemption because of temporary losses. To put it another way, during the market downturn, more and more fund shares will be subscribed. In the long run, when the market picks up, the income will be even greater.

For some people, time is the fiercest enemy; For some people, time is the best friend. The latter realized the true meaning of getting along with time. A thing of the past, do not love, do not regret; At this moment, bend down and enter the game; Look to the future. Life seems difficult, but in fact it is extremely simple. Looking back from the end, spare no effort to invest in the present, this is the law of life.

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