Everyone knows the truth of buying low and selling high. It is safe to rise in time, and adjustment may be the time to enter the market. However, it is too difficult to get up and down in the market. What should we novices do? Bian Xiao compiled the investment guide of the fund market here for your reference. I hope everyone will gain something in the reading process!
The third investment "don't"
1, don't sell for a short time simply because of "fear"
Some investors are afraid of volatility and day trading. Spending a lot of time and money often backfires. The final account floated green, leaving a "legendary" memory.
Generally speaking, if you want to invest in a fund for a long time, you must first bear the corresponding fluctuations, and the real risk is that you can't bear the fluctuations.
Judging from the performance of major funds in the past 15, the annualized fluctuations of money funds, pure debt funds, fixed income+funds and equity funds have increased in turn. If we can withstand the fluctuations, we will have a chance to get more generous returns.
Don't let your "ambition" exceed your "ability"
The question is, what should I do before buying a fund to avoid the situation that "ability is not worthy of ambition"? We can call our risk preference and risk tolerance for funds as risk tolerance.
The former is a subjective attitude, which is related to one's personality, age, cognitive level and investment experience. For example, people who are optimistic, familiar and have some experience in investing in financial products may accept more than 50% of the investment losses, while most people can only accept 20%~30% of the losses psychologically.
Generally speaking, if the investment loss is not much, you won't be sleepless at night.
The latter can be regarded as an objective risk tolerance, and the economic basis such as the amount of its own funds, whether there is spare money investment and income level has a great influence on it. For example, a sum of money will be used for the down payment of a house after half a year, which obviously cannot bear the risks brought by equity funds with an annualized volatility of about 20%.
Therefore, when risk appetite
Don't "waste" risk tolerance.
There is a famous phenomenon in investment: the trinity of investment impossibility.
High return, low risk and high liquidity cannot exist at the same time. Generally speaking, the second of the three is an ideal strategy.
If our investment goal is to pursue higher returns as much as possible, then there are two directions to choose products. One is to give up some low-risk needs by improving our risk tolerance, such as open-end funds with relatively large rights and interests; The second is to give up high liquidity on the premise that funds allow, such as choosing regular open-end stock funds.
In short, when investing in funds, we neither overestimate the short-term fluctuation risk nor underestimate the long-term income.
The third "need" of investment
Markowitz, the Nobel laureate in economics, once said that "asset allocation is the only free lunch in the investment market".
1, we should treat the market rationally and do a good job in risk prevention and control.
Warren Buffett once said, "Fear when others are greedy, and be greedy when others are afraid." When the market fluctuates, everyone should learn from the "reverse thinking" of investment masters, treat it calmly, and don't chase after the ups and downs.
If citizens and friends still have spare money that they don't need in the short term (for example, 3-6 months), they can arrange it on dips. At the same time, investors are reminded to consider their risk tolerance and investment objectives clearly when making investment operations. For investors who have a certain risk tolerance and can hold it for a long time, in the face of market shocks, they should maintain a long-term investment mentality and allocate high-quality assets on dips, so that they can get ideal long-term returns when A shares rebound.
2. Balanced configuration
It is difficult to predict the market accurately. Many times, I don't know whether to eat meat or get beaten tomorrow. However, no matter how the market is disturbed, we must do our own asset allocation.
At present, the rhythm of market style rotation is obvious. Although funds are also products that buy a basket of stocks, bonds and other assets, it is also a good way to diversify investments and use funds for balanced allocation.
The risk of spending all your money on one fund is actually relatively high. But in practice, many people don't pay much attention to this. The diet needs a "combination of meat and vegetables" and the investment is similar. For the citizens with high risk tolerance, it is necessary to "eat" such "meat dishes" as stock funds and hybrid funds. At the same time, we should also "eat" some "vegetarian dishes" such as bond funds and money funds, and occasionally eat "seafood" such as QDII funds, which may be better in nutrition. For people with low risk tolerance, some broad-based index funds can be matched.
It is difficult to predict the market accurately. Many times, I don't know whether to eat meat or get beaten tomorrow.
3. Strengthen the concept of long-term investment.
After selecting fund managers and fund products, we need to adhere to the concept of long-term value investment, and at the same time, we can buy them in batches through fixed investment, which can effectively reduce the uncertainty of one-time investment, thus helping to overcome greed and fear in the volatile market and finally reap the long-term benefits of fixed investment smile curve. Especially for investors who have recently bought at a high level and experienced a big retracement, when the market falls or fluctuates, insisting on fixed investment is an opportunity to dilute costs.
Investment is most afraid of high quilt cover, and fixed investment is better at climbing pits. Although the repeated market volatility is disturbing, from another perspective, the stock market decline may be a good opportunity for us to pick up cheap chips. The more chips you get in the low position, the lower the cost of opening a position, and when the rising cycle comes, you can get more excess returns. At the same time, fixed investment can give play to the advantages of diluting opportunities and diversifying risks, and make investors' mood more stable.
In short, it is mainly to control the position in time in the volatile market, reduce the cost of the position, and prevent the quilt cover with great probability. It is worth noting that investors should be patient enough to deal with the volatile market, grasp the timing of entry and exit, and learn to stop loss and take profit in time.
"The most brilliant day in a person's life is not the day of success, but the day when he challenges life from lament and despair and bravely moves towards his will." Investment is life, and the most successful day of investment is not the day of making money, but the day of bravely investing in a bright future in despair!
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