You may be eager to try because your friends around you have made a lot of money by buying funds, but you don't take action because you are worried about losing money or don't understand the operation steps. So, does the fund make money or not? The answer is clear, make money. The following are several principles commonly used when investing in funds.
The first is the principle of long-term holding of funds. Unlike stocks, frequent buying and selling of funds will inevitably lead to losses or extremely low returns. From the selling fee of the fund, it can be found that its handling fee is higher than that of stocks, so the investment concept is inevitably different from that of stocks. Since it is held for a long time, the money we use to invest in the fund should be money that will not be used in the short term. For example, if you have a sum of money but are ready to study abroad, buy a house, etc., it is not suitable to invest in the fund.
The second is to choose the appropriate fund sales platform. For example, which one do you prefer, a common fund purchase platform, a bank or a third-party platform? Personally, I prefer the third-party platform. Its biggest advantage is that the handling fee is much lower than that of the bank. When the investment amount is large, the difference between the handling fee between the bank and the third party can even reach ten times.
In addition, it is to choose the right fund manager. As a novice investor, we inevitably feel that we have no way to start when choosing a fund by ourselves, and we face a higher risk of loss. As long-term and experienced professionals, fund managers ask them to help us manage funds not only with low risk of loss, but also they can gather many small investment funds to create greater returns. They have experienced a bull market and bear market and are more comfortable with market risks. Secondly, the retracement value is low, and the retracement refers to the range of the price of the subject matter from the highest to the lowest in a period of time. The low retracement value indicates that the investment of fund managers is more stable and the risk is smaller.
Finally, try to choose a diversified fund. When we buy funds, we should not blindly pursue the so-called "wind outlet", that is, the current hot fields, such as artificial intelligence, automation, AI and so on are all hot topics, but at the same time, if we only invest in such funds, the risk is also very high. First, if the investment is too concentrated, there is a great risk, but it is emerging. The development of the field is full of uncertainty, which leads to uncertainty about our earnings.
The above three rules of investment funds are generally observed by investors. If used properly, many "traps" can be effectively avoided.
