Fund investment how to "stable win"?

A start of the year, the fund because of the decline frequently on the hot search, the A-share market also showed a shock trend.

From last year to the beginning of this year, the fund performed poorly, far below investors' expectations.

Most of the fundamentalists obviously did not realize the expected high returns, and even be deeply trapped. Many fundamentalists can not help but begin to doubt, "chicken" in the end can make money?

The answer, of course, is yes.Even in 2021, when the economy was in the doldrums and fund performance wasn't too good, overall, funds delivered positive returns, beating inflation and the returns of most financial products in the market, and even doubling the returns of some individual funds.

So why do many funders complain about losses and not making any money? There are two main reasons.

🔹 First, many new funders are keen to follow popular star fund managers, which is an important reason why many funders lose money.

The capital market is seldom a constant winner, like Warren Buffett this level of god is only a very small probability, many fund managers in some years to obtain a very good performance, in addition to the strength, but also a large degree of luck component.

But.The capital market can not always have good favor, over time, these fund managers rely on the luck of the money earned, the probability of the future will be based on strength to lose back.

In addition, when a large number of fund users flock to a popular fund manager, for example, the funds managed by the fund manager increase from $10 billion to $100 billion, the technical difficulty will be greatly increased, and the investment risk also increases.

🔹 Second, many new funders use their short-term trading habits of chasing the stock market to buy funds, and ultimately struggle to get good returns.

As an institutional investor.Most of the fund managers are investing for the long term, and their returns need to be realized through a longer period of time.In the short term, fund managers have no advantage over the market.

However, if the fund users to chase the rise and fall of the mentality to buy funds, the equivalent of short-term funds to buy long-term products, which in itself is a kind of capital mismatch, naturally, it is difficult to get a good return on income return.

Statistics also show that those who are able to make money by "raising chickens".Mostly long term holders on a relative basis, not short term traders who trade frequently.

The investment market is unpredictable, as an ordinary person, what exactly should be the way, in order to really earn money?

There are two little nuggets that can be practiced that you can incorporate into your situation to be comfortable regardless of the ups and downs.

Tip #1: Knowing You and Your Investments

If you buy a fund that makes you 'anxious' and 'can't sleep' but you don't know what to do, it often means: the current market is beyond your cognitive understanding.

Accept first that this is a normal situation in itself.

Next, before taking action, you are advised to do these two things:

Step 1: Calculate 3 numbers.

Number 1: How much money do you have that you won't use for a long time? (For example, Lao Zhang counted 300,000 dollars of his own money that he won't use for a long time)

Number 2: Equity Plan Allocation Percentage, that is, how much of the money you can't use in the long run you plan to put into equity (stocks, funds, etc.). (For example, Lao Zhang plans to take 50%, 150,000 for equity investment)

Number 3: Equity's current position, what equity investments are currently held, and how much of the plan. (For example, if Lao Zhang already has 75,000 equity investments, the position would be roughly 50%)

The value of doing these calculations is to prevent you from putting money into the market that you shouldn't be buying stocks or funds.

The second step is to test whether you are doing effective decentralization.

Some investors think that buying every sector once is diversification, and wait until the general market falls and the amount in their account collapses.

With regard to diversification, three principles can be referred to:

First, there is limited decentralization.

Choose a fund manager or index you trust that has been tested over time as an underlyer position, accounting for about 50%.

The second is to achieve sector and style diversification.

Choose fund managers from different tracks. Put your eggs in different baskets.

Next, there is the control of quantity.

The fund limit should not exceed 15%, and it is best to make a portfolio of 5-8 funds for fund investment.

Tip #2: Avoid Emotional Distractions

First.It is important to recognize that volatility is inevitable in the investment process.

The economy fluctuates, business growth fluctuates, we ordinary investors still have information asymmetry problems, and it's all too natural for emotions to fluctuate, so don't run away.

Next.One is to set rules for buying and selling, and the other is to do the right kind of fixing.

Rules for buying and sellingThis refers to what you consider to be 'qualified' buying and selling criteria, as proven in practice.

Fund manager Shinling Wang has a particularly practical way of finding his own buying and selling guidelines - the"The Little Book Act."The

Take out a small notebook and record the reasons behind each of your decisions.

Write out the reasons, but be sure to face your own true heart and write down the real reasons.

The only reason to sell is when the reason to buy disappears. By documenting the thinking behind each investment operation, you can continue to create your own complete investment system.

Note that this buying and selling criterion is not about striving for 'absolute correctness', but about putting you on the great path of 'being able to iterate on your own'.

In investing, having specific "buying and selling criteria" is also equivalent to an indicator signal for action and a clear direction for operation.

with respect tofixed investment, requires a very high level of investment discipline.

It has two elements, 'timing' and 'quota', very simple but not easy to do.

A simple approach to investing can help us overcome common 'human weaknesses' in investing and avoid emotional damage.

Fund manager Yao Zhipeng has talked about the return figures that can be achieved with fixed investment:

If we start in 2003, the average return on equities over the last 18 years is an annualized 151 TP3 T. With a fixed investment, we achieve fund returns that basically meet this average return.

To get the benefits of a fixed deposit, you have to -Do not come in admiration at the peak or turn away at the trough.

Mentally, it's good to be optimistic because "pessimists get smarter and optimists get richer".

Operationally, you can lower your expectations for returns.

Most importantly, believe in and stick to a sustainable investment system that you understand.

Although the start of this year's market is not satisfactory, but both for stockholders and funders, can be in the "flock" panic when more calm, has overcome the market.