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Three tips to master when buying and selling mutual funds

Everyone wants an ideal fund that offers peace of mind, effort and great returns. The ideal fund is the ideal of the fund. The ideal fund is to share the happiness of growth according to the expected plan, but not everyone has such luck to encounter this kind of fund, because you may not be able to grasp the temperament and characteristics of the fund, and end up missing a good fund, investors are buying and selling funds There are at least three tricks to master in the process.

  1. They shouldn’t rush to sell the fund as they sell the stock because the fund’s net worth has increased

The fund’s net worth growth is a slow process because it is a combination of multiple stocks, and unless the securities market explodes in the short term, its net worth growth cannot be as volatile as stocks can rise by 10% or more. If the short-term fund NAV spread is pursued at the expense of long-term dividends , the loss will be insignificant.

The so-called anxious can not eat hot tofu, the nutrients will be fully and effectively dissolved in the “fund”. We found in big data that high-probability funds held for more than three years can achieve good returns.

  1. Blindly setting return expectations is also not conducive to getting more from the fund’s long-term returns after deducting transaction fees, as long as you earn much higher interest than bank time deposits, you will not hesitate to sell it. This is the misunderstanding of many fund holders, who are just stepping on the beat of the fund’s growth returns, which is also the reason why some conservative investors have difficulty in obtaining higher growth returns in stock fund investments .

Earnings expectations and loss expectations should be determined, but they should not be blindly determined. To be scientific and reasonable. We believe that historical experience has proven a position close to the average, so around 15%-20% is OK. Within this range, we can also adapt to different industries, topics and hotspots.

  1. Too inclined to the high yield of fund products

Since the fund is a professional wealth management product, it needs long-term management and operation to highlight its investment returns, and it needs to follow the long-term investment rules of fund products. It can not only maintain rapid growth in bull markets, but also maintain stable investment in bear markets. Income, rather than a single net value growth rate as the standard to measure the pros and cons of fund products such as stock operations, is a truly excellent fund. Therefore, for fund investment, we cannot just rely on our own demand for short-term funds and ignore the staged investment characteristics of funds, thereby strangling funds and losing the real “cornucopia”.

Of course, when choosing funds, especially when investing in stock funds, we should also pay attention to portfolio diversification. Proper diversification can share the risk of a single product. If we invest all of our money in stock funds, which is speculation, not investment, then these funds should invest in products with different risks and different returns, such as half of savings or allocation money funds , and a small portion to buy insurance or bonds for themselves funds , and the remaining small portion is invested in equity funds. In this way, the risk can be effectively controlled within an acceptable range.

Diversification is the strategy of taking both offense and defense. While actively investing, investors are free to react no matter how the market moves. They can earn steady dividend income when the market is down. When a bull market hits, rising expectations give us excess capital gains income, so that we can truly experience left-hand dividends, and the ideal investment area is to earn the difference.