Many investors may find that the historical returns of several star stock funds they bought are very high when viewed individually. However, after a sharp operation, the actual income earned is not as high as the fund itself during the same period.

Earn more, this is a typical phenomenon where funds make money but Christians don’t.

Why is this?

The core reason is that your foundation is not firm.

According to the official survey report given by the China Asset Management Association in March 2021, 39.7% of investors were significantly anxious when they lost less than 30%, and 35% were obviously anxious when they lost 30 to 50%.

Add it up to nearly 75%. Moreover, it is very normal for partial stock funds to suffer losses due to short-term fluctuations. Once the market retreats violently, many partners will start to feel anxious after their funds have experienced floating losses of more than 10%.

If you have a risk-averse mentality, you will often lighten your position or even exit.

Therefore, the average holding time of most funds is not long.

According to official surveys, 45.4% of investors have held funds for less than one year on average, and 80.1% of investors have held funds for less than 3 years on average. Buying a fund is sometimes like falling in love, and it is a love that grows over time.

matter.

The core reason why many investors' frequent redemptions are far different from the performance of the fund itself. How to solve the problem?

The most important thing is to lengthen the holding time. According to statistics, in the past 15 years from 2005 to 2020, the profit probability of holding stock funds at any time was less than 60% in less than one year, and after holding it for three years

The winning rate has increased to 74%, and the holding rate for five years has been as high as 90%.

If you choose a high-quality fund and hold it for a long time, the probability of profit will be greater than that of index funds.