What are the methods of fund investment?
I. Long-term holding
Buy it once and hold it for a long time. Don't get off easily. This kind of investment fund can completely eat the expected income of the whole bull market, but no one can be sure whether the current market is a bull market.
The bull market is coming out and can only be seen in the rearview mirror, so buy it once and hold it for a long time to test investors' judgment on the trend. Once the judgment is wrong, there may be profit-taking, or even loss.
Second, the band operation
The so-called band operation is actually the expected income in the short-term grasp stage. Its advantage is that if the market style is well grasped, the short-term expected income is very considerable. For example, buying liquor industry index funds at the beginning of the year will yield a short-term expected return of 50%-60%.
But if you don't step on the tuyere, band operation will become a common way to chase up and down. This method also has limitations. The so-called profit and loss are the same, and there is no way to make a profit forever.
Three. Fixed investment of funds
Everyone is familiar with the fixed investment of the fund. Its advantage is that it doesn't need a high buying opportunity. Of course, you shouldn't start investing when the Shanghai Composite Index is obviously overvalued by five or six thousand points, which is equivalent to increasing the difficulty of making profits.
By investing in funds in batches regularly, the cost of purchasing funds can be gradually diluted when the market falls. However, the bull market is coming, and the fixed investment funds are not very good. It takes time for funds to invest in the bull market to accumulate cheap chips. If they invest in the bull market, it is equivalent to higher and higher buying costs. The expected return of this kind of investment is much lower than that of one-time investment, and if it is bought in a high place, it is likely to be trapped.
Well, that's all for fund investment methods. I hope it will be helpful to everyone. Warm reminder, the fund is risky and needs to be cautious in investment.