There is a concept of average annualized income in the fund investment market. For example, in the past 22, the average annualized income of ordinary stock funds was about 42%, so many investors think that it should be very simple for them to achieve higher than this average income level, because as long as they choose a fund with an upper-middle income, they can hold it for one year.

in other words, the average annualized income of investors buying stock funds in the whole fund market is 12%, so if they buy funds themselves, it is very easy to exceed this average, but in fact, we are often easily misled by this average.

In psychology, most people feel that they are smarter than ordinary people, and they also feel that they can beat most investors in investment, not the cut leek. In fact, we generally overestimate ourselves, and at the same time, this average income data is not necessarily true, because the market changes in real time.

Charles Munger once said: The eternal rule in life is that only 2% of people can make it into the top fifth.

Let's take a look at the concept of average return again. There is such a data that 3% of investors in the big bull market in 27 lost money, but we don't know what the average return rate of investors in the market is.

As we all know, Warren Buffett's average annualized rate of return is about 2%, but this rate of return is still disdainful to many people, because in their lives, one person or some people around them always earn ten times or more a year.

when considering a fund, we will pay attention to the fund's return data, especially the long-term average return. However, the long-term return is not equal to the expected return. If the annualized return of a fund in the past 1 years is 2%, we can't expect to achieve a 2% return this year. The market itself is volatile, and the historical rate of return is never equal to the future. What we should pay attention to is the source of the historical rate of return.