Compared with stocks, funds are more suitable for long-term holding, but it does not mean that every fund is suitable for long-term holding. If you plan to hold a fund for a long time, you must see if it has these characteristics.

What kind of fund is suitable for long-term holding?

1 the criterion for judging the long-term performance of a fund with good long-term performance is suggested to be three years to see whether its historical performance outperforms the broader market. Funds with good historical performance will not be much worse in the future, and funds with poor historical performance will not be much better in the future.

2 The overall trend is upward, that is, the net value keeps hitting new highs. The trend of funds has been upward. Even if there is a decline, it will not destroy the overall fundamentals. Just like the pyramid, innovative funds are more suitable for holding.

3 The fund manager has strong ability, and whether the fund can make money depends on the ability of the fund manager, that is, the investment vision and judgment. If most of the funds managed by fund managers are losing money, it is best not to hold them for a long time.

The historical retracement is not big, and the good net value of the market will rise steadily. If the market is not good, the retracement will not be great; For example, market fanaticism may not keep up, but the performance will be quite good in the long run.

5 The scale is moderate, and the negative impact on performance can be controlled. The scale of actively managed funds is 200-200 million. Too large a fund manager is difficult to manage, and too small a fund manager may be liquidated.

If you plan to buy a fund, you must look at its net worth chart since its establishment to see if it meets the above points. Those with strong investment ability can gain income through band operation and short-term investment. If you are usually busy and don't know much about funds, it is more appropriate to hold it for a long time.