Buying a fund is not about buying stocks. "Buying down but not up" is not a good approach; the net value of a fund can reflect its historical performance to a certain extent and has no direct relationship with market risk and asset value. . Investment income will mainly come from the growth of the fund after buying it, which depends on the investment opportunities in the target market on the one hand (these opportunities are the same for a certain type of fund), and on the other hand depends on the investment team's discovery and The ability to take advantage of these opportunities. Therefore, in the long run, the net worth at the time of purchase itself has little impact on investment returns.

For example, an investor subscribed for 20,000 new funds for 20,000 yuan during the fund issuance period (subscription, subscription and redemption are not considered here) After one year, the net value of the fund becomes 1.2 yuan, the net value has increased by 20%, and the investor’s income is 4,000 yuan; assuming that the customer still invests 20,000 yuan when the net value of the fund is 0.8 yuan, the subscription share is 25,000 After one year, the net value increased to 0.96 yuan. Although the share was 25,000 yuan, the investor still received 4,000 yuan in income. Obviously, for open-end funds, as long as you choose an excellent fund manager, they should be held as a long-term investment tool. The "buy down but not up" strategy does not apply to funds.

Many investors are worried that the net value of the fund has reached its peak and will either fall back or it will be difficult to rise again. In fact, this is confusing the difference between funds and stocks. It is easy for a stock to fall back after hitting a sky-high price because the rise in stock price depends on the profitability of the listed company. When profitability cannot keep up with the speed of stock price rise, the stock price will inevitably be corrected. The characteristics of the fund are diversified investment and flexible allocation. It purchases a "basket" of stocks, that is, a collection of many stocks. Fund managers will adjust their investment portfolios at any time based on the rationality of individual stock prices, the competitiveness of company operations and changes in market sentiment, and can select stocks with greater potential for stock exchange operations at any time. Because of this, investors can see in the quarterly and annual reports released by fund companies that the fund's heavy holdings will slowly change over time.

Therefore, a fund with a correct stock selection strategy and a properly adjusted investment portfolio can continue to rise in net worth, and the net worth can be even higher. On the other hand, if the stock selection is not done well, a fund with a low net worth may still continue to fall.

When investors choose fund investments, the net value of the fund is indeed a factor to consider, because it directly determines the cost of investment. However, fund investment focuses more on future long-term returns. As long as it is an excellent fund management company with a strong brand and outstanding performance, it is worth entrusting your own funds and waiting for investment returns.