Funds make money mainly because there are professional investors behind the funds to manage, and the risks can be better controlled, so buying funds is often more profitable. Since last year, the capital market has achieved a great development. Many funds ran out of very high returns last year, and many small whites also entered the ranks of the people. Many people said that although the short-term rise of funds will not be too great, the withdrawal of net worth is well controlled, so long-term investment is basically profitable. If you look at the performance of those star funds, there may be some fluctuations in the short term, and in the long run, it will basically increase by more than 3%, especially when the market is good in recent years, many funds have directly rushed to more than 1%, and some hot sectors have also attracted many people to participate in investment.

However, in the process of investing in funds, it is necessary to control risks. Although the fluctuation of funds is smaller than that of a stock, not all funds are profitable. In the process of investing, it is still necessary to observe the positions of funds and the basic information of fund managers. If people follow suit and speculate on hot spots, it may be easy to be harvested. First of all, we need to know why funds generally make more money. Although they all invest in stocks, compared with ordinary people, funds have professional fund managers, and there is a huge investment research team behind the fund managers to analyze all kinds of data. Their knowledge and experience are far more powerful than ordinary retail investors. Although there is no guarantee that they will make money, as professional fund managers, they often consider risks first. In the long run, withdrawing small funds often leads to higher returns.

Because there are many possibilities for high short-term returns, it is possible that the fund has a heavy position in active stock, which will drive the increase of fund returns. However, once the stock falls, the performance of the fund will be ugly. Therefore, when looking for a fund, we must look at its performance for at least three years to see if it can stabilize its returns in the long run. If it cannot maintain a stable state, it may be worse than investing in stocks.

In fact, the advantage of fund managers is that they stare at the market for a long time every day and study the company. They often study the industry and the company in depth. Ordinary retail investors look at the company's financial report at most, and look at the company's revenue, so they buy the profit data. But truly excellent fund managers often go deep into the enterprise, conduct surveys, and observe the real state and work of employees, so they must get more information and news than ordinary people.