What funds provide is the prospect of long-term stable capital appreciation, not the opportunity to get rich overnight.

From a foreign perspective, the expected annualized returns of investment funds in various countries also have a certain average profit level, and the expected annualized returns of investments will always be good or bad.

Reasonable expectations for the expected annualized return of the fund should be formed based on the fund's investment style, the fund manager's investment operations, and the general market environment of the securities market. Otherwise, it may be difficult to achieve the set investment goals.

Only focus on expected annualized returns and ignore risks: You must always remind yourself that any investment activity has risks, and risks correspond to expected annualized returns.

Although the fund is financial management and can achieve portfolio investment, it can only diversify risks and reduce risks to a tolerable level, but cannot completely eliminate risks.

In addition, although taking high risks does not necessarily lead to high expected annualized returns, in order to pursue high expected annualized returns, one must take high risks.

Therefore, fund investment is still risky.

What are some tips for investing in open-end funds? Tip 1: Don’t borrow money to invest: Try not to borrow money to invest. It is inevitable that there will be a decline in the long-term investment, so as not to be burdened by interest burdens and short-term hold-ups.

Tip 2: Diversification: If you have enough funds, you can consider diversifying your investment into multiple funds based on the investment characteristics of different funds.

In this way, if a fund performs temporarily poorly, through diversification, the unsatisfactory performance may be offset by the outstanding performance of another fund.

Tip 3: Be prepared for the long term: Most successful investors have long-term investment plans.

Long-term investment allows capital time to appreciate and overcome short-term fluctuations.

Generally speaking, the short-term volatility of the stock market is very high, but if you invest for a long enough time, you can avoid the risk of short-term fluctuations. Coupled with the stock selection and operations of professional fund managers, you will have a greater chance of winning in the long run.

Tip 4: Really understand the characteristics of the investment fund you choose: Before making an investment decision, you need to understand your personal investment needs and investment objectives.

When choosing a fund, you need to carefully read the fund contract, prospectus or public prospectus and other documents to truly and comprehensively evaluate the expected annualized returns, risks, past performance, etc. of the fund and fund management company to avoid making a choice that is not suitable for you.

types of funds.

Tip 5: Regularly review your needs and circumstances: Although we should invest for the long term, we also need to update our investment decisions as we age, change our financial situation or investment goals.

Most successful investors will pursue higher profits in the early stages of saving and investing, and will gradually turn to more stable investments as time goes by.

Tip 6: Don’t perform overly frequent operations: Different from the short-term in and out operations of investing in stocks and closed-end funds, open-end funds are basically a medium- and long-term investment tool.

This is because the prices of stocks and closed-end funds are affected by market supply and demand, and have greater short-term volatility, while the trading price of open-end funds directly depends on the net asset value and is basically not affected by market speculation.

Therefore, being too short-term to seize the opportunity to enter and exit or chasing the rise and fall is not only difficult to make money, but will also increase handling fees and costs.