Example of why funds cannot be purchased in one go
When undecided about investment? Investors tend to listen to the advice of professionals and make decisions accordingly. For example, investors often consult professionals around them: "I want to buy a fund, but I don't know anything. Please recommend one or two to me." Here are some reasons why funds cannot be purchased in one go, for everyone's benefit. refer to.
If you are optimistic about a certain fund, why can’t you buy it all at once?
Under normal circumstances, investors will get a relatively safe answer, such as “If you are optimistic about the A-share market in the long term, you can Consider buying index funds related to the CSI 300 or CSI 500 index; if you are optimistic about a certain fund manager, you can consider buying his classic products?" Then, investors may continue to ask: "With so many types, can you remember them? I can’t figure it out, how about you recommend one to me directly?” If investors want to inquire about Wells Fargo Fund’s products, most people would probably recommend Wells Fargo Tianhui, because it is the company’s flagship product, and employees buy it mostly for themselves. It is also well known in the industry.
But the outcome of this conversation may be unexpected: "If you, as a professional, agree, then I will spend all my money to buy it!" Faced with this extreme situation, professionals may It is recommended that investors should not buy at once, but buy in batches and one after another to achieve diversified investment.
In fact, many people are troubled by similar questions: If you are very optimistic about a fund manager and are convinced that he can help you make money, why not spend all your money to buy his products?
In fact, it is impossible to achieve success with an all-or-nothing investment approach. There is no absolute right or wrong in choosing fund products. The so-called success is choosing the one with a higher probability of being right. The ultimate success is the accumulation of long-term choices with high probability.
But since it is called probability, there is still the possibility of small probability events happening. Therefore, when planning to invest in funds, if you are an investor who does not understand the market, then buy some of the several types of funds that have performed well in the long term. For example, if you buy Fuguo Tianhui with a broad base, buy one each of industry-themed consumer, pharmaceutical, and technology funds, and then allocate a debt fund, the probability of all investments failing in the long run is small.
Of course, don’t buy the whole position at once. Even if you buy at the highest point, as long as you have “bullets”, you can slowly cover your position at a low position. The time to climb out of the pit will be shorter than reaching a new high of net worth. time.
The secret to a high probability of winning in fund investment is to diversify your investments and hold them in batches. The throwing method of investing is the preserve of a few people. If ordinary investors also learn it, the money they win when luck comes will be returned to the market when they lose luck.
How to buy and sell funds
There are three types of fund buying and selling. Newbies can bring their ID cards to a securities company to open a bank account, buy, sell or make fixed investments. The minimum purchase of an exchange-traded fund is 100 shares. For example, the current closing price of 163503 is 0.5 yuan. You can buy 100 shares for about 60 yuan. The minimum price for over-the-counter fixed investment is 100-300 yuan. Different banks have different standards. You can compare. The cheapest one is on-site trading. Trading: Securities companies’ open-end funds, index funds, closed funds, LOF funds, stocks, warrants, and bonds can all be bought and sold. There are more than 590 kinds of open-end funds. One. Bank subscription: It is the worst way to buy and sell funds: the front-end fee is a subscription fee of 1.5%, the redemption fee is 0.5%, and the back-end fee is a redemption fee of about 2%, but that is for a holding period of no more than half a year. , the redemption fee is charged on an annual basis, and is generally waived if held for more than 3 years. Each bank can purchase about 100 types of funds, and it takes 4-7 days for the money to arrive, which is a long time. Maybe the market has changed and you want to subscribe again, but the money has not arrived. It is the worst way to buy and sell funds. two. Go directly to the fund company to subscribe online: the subscription fee is 1.5% and you can get a 40% discount, and the redemption fee is 0.5%. Each fund company can purchase its own funds and must register with multiple fund companies online. After opening online banking, it takes 4-7 days for the money to arrive when redeeming, which is a long time. Maybe the market has changed and you want to subscribe again, but the money has not arrived. Opening online banking and registering with multiple fund companies online is troublesome and a poor method of buying and selling funds. three. Open a securities account, sit at home, and subscribe online without going to the bank. Buying funds from a securities company: The subscription fee for buying is 0.3%. The redemption fee for selling is 0.3%. Open-end funds such as: Southern Active Allocation, Southern Gaozeng Guangfa Small Cap Fund, you can also buy index funds, which are 8 ETF funds, such as : E Fund Shenzhen 100 ETF China SSE 50, AIA Dividend ETF, the advantage is that the cost is low, the handling fee for buying and selling funds in securities companies is 0.3%, no stamp duty is required, the funds arrive quickly, are immediately available, and can be used immediately, which can avoid redemption 4- After 7 days of waiting, use the securities account to subscribe for new funds, and the subscription fee will be returned to the investor.
Recently, I keep receiving calls about stock allocation. Is this risky?
Hello, stock allocation also has certain risks. There are risks in leveraged trading; generally stock capital allocations have several times leverage, and the risk will be much greater than before.
The transaction cost is too high; stock allocation is also a way of trading and a way of borrowing. As we all know, borrowing money has interest. The interest rate of stock allocation is 0.12% to 0.27% daily interest rate. The annual interest rate is considered usury.