I often come across people asking me, "can you make money by buying funds now?" "When do you think it's best to buy funds?" or "it's better to buy funds in a bull market or a bear market.". When people ask this question, I will only say that as long as there is spare money in hand, it is the most suitable time to buy funds, because funds are investment tools that do not need to be selected.
Many people said they were puzzled because most of the domestic investors were still retail investors, which was also a typical speculative mentality. They swarmed in during a bull market and couldn't avoid it in a bear market. Investment fund we should establish a very important concept is the long-term investment income.
The variety of funds is very rich, including stock funds, index funds, bond funds, monetary funds, and some mixed funds based on the middle, etc.
The risk of fund fluctuation mainly comes from the fluctuation risk of the stock invested by the fund.
For monetary funds and bond funds, the volatility of the stock market has only a very small impact that can be ignored, so no matter when you choose to invest, it will not have a big impact on you, and these two funds themselves are very low risk coefficient varieties.
Then we look at funds that invest in stocks.
Fund investment is actually a reflection of the concept of decentralized investment, and its fluctuation depends on the size of the investment stock position. The risk is much lower than the stock. If you are still afraid of risk, you can choose the monetary fund or bond fund with low risk coefficient. In the bull market, we can choose the stock fund to obtain the excess return of the market. In the bear market, although the net value of the fund will fall, it is a good time for us to increase the position. We can spread the low cost, wait for the market, and walk out of a perfect smile curve. What is the smile curve? For example, I bought a 10000 yuan fund when the net value of the fund was 2 yuan. Later, the net value fell to 1.5 yuan, and I bought another 10000 yuan. If I didn't buy the 10000 yuan later, I would have to wait until the net value rose to 2 yuan before I could recover the capital. However, because I made up a position, when the net value rose to 1.75 yuan, I had already recovered the capital. When the net value rose to 2 yuan, I made a profit of 5000 yuan. This is the smile curve, so we can buy funds in any market.
To buy a fund is to ask a professional person to take care of our funds. When the market changes, the fund manager will actively adjust the stock position and strategy to reduce the risk of market fluctuation.
As has been emphasized above, fund investment focuses on long-term future returns. Long term investment can balance the risks brought by short-term stock fluctuations. At present, the average annual return rate of the fund market is about 12% (this return is not necessarily an annual return). It is the average annual return of long-term investment funds), not to mention the average income level. We calculate the annual return by 10%, and also take out 10000 yuan investment fund. When one person starts at the age of 20, the other starts at the age of 30. By the time they are 60 years old, the former has more than 540000 yuan in hand, while the latter only has more than 190000 yuan. Therefore, the earlier the fund invests, the more money it will make.