First woman: When?
When to buy and sell. This is probably the most important w of investment funds.
Some investors may say, "I don't have to choose the right time, but the fund manager will help me." But the fact is that the fund ranking competition is fierce, and the position game is very important. The fund manager's position will not deviate too far from his peers. In addition, most funds have the lowest positions, even if they are not optimistic about the stock market, it is impossible for fund managers to sell all the stocks.
I believe that if ordinary investors can adopt an investment method similar to the inverted pyramid structure according to the fluctuation law of the stock market, the probability of success can be improved. The stock market will rise if it falls more, and fall if it rises for a long time. In a certain period of time, there will be obvious overestimation and underestimation. Investors can make full use of this law to make timing.
Many professional institutions that do high-frequency trading arbitrage adopt the strategy of buying low and selling high, and rely on the law of high probability to achieve amazing and stable returns. Ordinary investors can also do it. The key to the problem is not to go with the flow, not to be greedy or afraid, and to abide by strict investment discipline. When the stock market is significantly lower than the valuation center, gradually increase the buying efforts, when the valuation is significantly higher than the valuation center, gradually sell or even clear the position, waiting for new buying opportunities.
Second woman: Which one?
That is, what varieties to choose for investment.
The investment and research strength and investment ability of fund companies and fund managers are very different. Especially in this year's market, the performance of different styles of partial stock funds is completely different. The expected annualized rate of return of growth style funds may be as high as 30%, while most value style funds have meager profits and may even lose money. Investors are inevitably confused when choosing funds.
Various fund evaluation agencies will provide investors with detailed investment advice, but this is by no means a guiding light. First of all, the fund rating is based on historical performance, the future performance of the stock market is uncertain, and the sustainability of fund performance is in doubt; Secondly, changing fund managers during the rating period may also make the evaluation results meaningless, not to mention reference value.
What should we do? Building a fund portfolio may be the main way to obtain the average expected annualized expected return, and funds managed by fund managers with strong medium and long-term investment ability should be the key investment targets. At least, they have proved their ability in the past. What investors want is ability, not luck.
Third woman: Where?
That is, through what channels to buy funds.
Compared with the first two W's, the purchase channel is relatively less important, but smart investors will try their best to reduce the investment cost, and the rates between channels are quite different. Investors should try to enter the market through the cheapest channels.
Great changes have taken place in fund sales channels, including traditional commercial banks, brokers, fund direct sales and online transactions, as well as third-party sales and third-party payment platform transactions. For a variety of sales channels, investors should carefully compare the redemption fees of different channels, especially after the restrictions on sales rates are liberalized, investors should fully share the dividends of channel rate competition and find the channel with the lowest redemption rate. For example, the subscription fee for the same fund in a commercial bank may be 20%, but it can be as low as 40% in the online trading platform of the fund company.