Fund, broadly speaking, refers to a certain amount of funds set up for a certain purpose. So what should novices pay attention to when buying funds? Bian Xiao compiled here whether it is necessary to pay attention to the market trend when buying funds, for your reference, and I hope you can gain something from reading!

Do you need to pay attention to market trends when buying funds?

Some people say that the market is not good recently, so be careful when buying funds.

Many times, it is not needed. When necessary, it is actually only when the market is 2-3% and there is a full-scale bubble, similar to 20 15 or the second half of 2007. At this time, you can actively choose to avoid equity assets, often once or twice in 10 years. At other times, you will find that in order to avoid fluctuations in those small markets, you often miss more benefits than avoid risks.

At present, the valuation level of the overall market is actually at a reasonable low level. Due to the extreme differentiation of a certain kind of assets, the valuation level is still in the post-bubble stage, but as long as we avoid these assets, I believe the medium and long-term yield is still very cost-effective.

What should I pay attention to if I don't pay attention to time when buying funds?

If it is within a reasonable range, choosing managers is far more important than choosing the timing of entering the market. You should take the time to choose a manager who conforms to your investment philosophy and you know better, so the time to enter the market depends on when you have money, not whether the market is suitable at this time.

Of course, as I said just now, there may be only one or two times in 10 that you need to actively observe the market and avoid risks. At other times, you can buy and hold normally. In fact, long-term holding is a very important source of income for holding Public Offering of Fund.

What if it is difficult to hold when the market fluctuates?

It is difficult for everyone to overcome emotions. You can buy some funds with a long closed period and objectively avoid your own decision to buy and sell, so the investment effect will be better.

In addition, if you are willing to overcome human nature, my suggestion is to read less net worth, more articles written by fund managers and more quarterly reports, which may help you control your emotions.

Is it more risky to choose a fund with a long closed period?

As long as you want to get better returns, whether it is a product without a closed period or a product with a closed period, there is actually little difference.

The first thing is to know the manager in advance, and then buy his products after knowing the manager clearly. If people think that they will buy a manager's closed products when they first meet him, they may feel that there are some trial and error costs. In case I don't know him correctly, or he hasn't stood the test of time, they can buy his open products first. It is also a good choice to buy his closed products after you know him for a period of time.

In the past two years, the returns of funds purchased by many investors are generally unsatisfactory. What caused the large losses of most funds? Mars, an analyst at Shanghai Securities Fund Evaluation Center, pointed out that, first of all, the essence of fund products is the combination of securities, and the performance of fund income is closely related to the performance of the underlying market. In the continuous decline of the stock market, it is difficult for equity funds and hybrid funds, which mainly invest in stocks, to achieve positive returns. In the case of rising stock market, most partial stock funds can often achieve positive returns. Therefore, it is impossible for funds to create myths and create high positive returns in the continuous decline of the market in recent years.

From the long-term performance, in most cases, the overall performance of funds is better than that of individual investors, especially in bull markets and volatile markets. For example, in 2006 and 2007, more than 80% of equity funds achieved a return of more than 100%, while the proportion of individual investors was less than 20 12 years. Nearly 50% of equity funds have achieved a return of 5% to 30%. According to the survey, more than 50% of individual investors have lost between 5% and 50%. Therefore, the fund is still a good investment tool for individual investors to participate in the capital market.

All kinds of problems, whether China's stock market construction, economic development or asset management industry, can't be eliminated in a short time, and all need the rationality of the market as a whole to promote it. However, as investors themselves, we must measure our risk tolerance clearly and not blindly listen to the propaganda of sales staff. If your risk tolerance is weak, or the funds you want to use in the short term, you can't invest too much in a single stock fund to avoid being greatly affected by the risk of stock market fluctuations. Therefore, for individual investors, it is more meaningful to have a long-term investment mentality, choose appropriate fund products according to their own risk tolerance and renewal, avoid excessive pursuit of popular funds with outstanding short-term returns, pay more attention to funds with relatively stable long-term performance, and spread risks through fixed investment and portfolio allocation to obtain long-term stable returns.

Tip:

First, we should pay attention to arranging the proportion of fund varieties according to our own risk tolerance and investment purpose. Choose the fund that suits you best, and set an investment ceiling when buying partial stock funds.

Second, be careful not to buy the wrong "fund". The popularity of funds has led to some fake and shoddy products "fishing in troubled waters", so we should pay attention to identification.

Third, pay attention to the post-maintenance of your account. Although the fund is worry-free, it should not be left unattended. Always pay attention to the new announcements on the fund website, so as to have a more comprehensive and timely understanding of the funds you hold.

Fourth, pay attention to buying funds, and don't care too much about the net value of funds. In fact, the fund's income is only related to the net growth rate. As long as the fund's net growth rate stays ahead, the income will naturally be high.

Fifth, we should be careful not to "love the new and hate the old" or blindly pursue new funds. Although the new fund has inherent advantages such as preferential prices, the old fund has long-term operating experience and reasonable positions, which is more worthy of attention and investment.

Sixth, we should be careful not to buy dividend funds unilaterally. Fund dividend is the return of investors' previous income, so it is more reasonable to change the dividend method to "dividend reinvestment" as far as possible.

Seventh, we should pay attention not to talk about heroes in the short term. It is obviously unscientific to judge the pros and cons of the fund by short-term ups and downs, and it is necessary to make a comprehensive evaluation of the fund in many aspects and conduct a long-term investigation.

Eighth, we should pay attention to the flexible choice of investment strategies such as steady and worry-free fixed investment and affordable and simple dividend transfer.

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