When dealing with investment, we are often vulnerable to short-term market ups and downs. There is no essential change in the macro-environment and economic fundamentals, but the short-term trend of the market, which is expected to rise on the one hand and fall on the other. Today, Bian Xiao will share with you how retail investors adjust their investments in the market decline, for your reference only!

Funds can be divided into broad sense and narrow sense. Broadly speaking, they refer to a certain amount of funds set up for a certain purpose, such as trust and investment funds, provident funds, retirement funds and so on. In a narrow sense, they refer to funds with specific purposes and uses. Usually, funds mainly refer to securities investment funds. The income of securities investment funds comes from the future, and the performance of the income is inseparable from the performance of the investment target market, which has certain risks.

Adhere to the concept of long-term investment

Short-term ups and downs reflect fluctuations in investor sentiment. If we take this as the basis of our investment decision-making and continue to chase the trend, we will easily become a reverse indicator in the end, "it will go up as soon as we sell it, and it will go up as soon as we buy it." This almost ignores the real source of income behind equity investment.

Equity investment should not be a short-term action of "only doing it when the market goes up and not doing it when the market goes down", but a long-term action that we will participate in in the next five years, 10 or even longer. If we think from a longer-term perspective, the decision-making basis of equity investment transactions should come from a set of effective investment disciplines or investment logic to cope with short-term market fluctuations and long-term bull-bear conversion, so as to better earn long-term stable and sustainable income and let time accompany you to get rich slowly.

Buffett once said that there are three very important factors for successful investment: good target, good health and compound interest. Investment is actually very simple, as long as you "choose the right one, hold it". Choosing the right one means choosing the right investment target that you know and hold for a long time, so investment should be boring.

Abandon the mentality of getting rich overnight

Recently, Shi Donghui, director of the Capital Market Research Institute of Shanghai Stock Exchange, and small swallow, vice president of Tsinghua University Wudaokou Financial Research Institute jointly wrote an article, revealing the trading behavior characteristics of different types of investors in China.

A set of data shows the account income of different types of investors, as shown in the following table, from which two conclusions can be drawn:

1. Investors, whether retail investors or institutions, have negative timing returns. In other words, day trading based on short-term ups and downs will eventually bring negative contributions. The more you want to make short-term quick money, the more you lose. Therefore, when investing, don't participate in the capital market where the short-term return is expected to be 20%-30%, especially in a bull market.

2. All types of retail investors are losing money, but institutional investors are ultimately making money. The reason is that institutional investors win the income from stock selection, that is, the money they win earns the long-term profit growth of excellent enterprises, so short-term timing is not as good as long-term stock selection. For investors who lack investment experience, it is better to participate in the capital market through quality products.

To sum up, be calm before investing, and don't always hope to make quick money according to short-term ups and downs. Any investment will not be immediate, even if it does exist, it is often intense and hasty, and it is difficult to maintain it for a long time, because investment is more important to control risks. If the risk is uncontrollable, no matter how much income accumulated before, it will be lost because of uncontrollable risks. There should be a set of long-term and effective investment logic when investing. Only in this way can we avoid being influenced by emotions, and we can gradually become rich when the market changes anyway.

In the past two years, the returns of funds purchased by many investors are generally unsatisfactory. What caused the large losses of most funds? Mars, an analyst at Shanghai Securities Fund Evaluation Center, pointed out that, first of all, the essence of fund products is the combination of securities, and the performance of fund income is closely related to the performance of the underlying market. In the continuous decline of the stock market, it is difficult for equity funds and hybrid funds, which mainly invest in stocks, to achieve positive returns. In the case of rising stock market, most partial stock funds can often achieve positive returns. Therefore, it is impossible for funds to create myths and create high positive returns in the continuous decline of the market in recent years.

From the long-term performance, in most cases, the overall performance of funds is better than that of individual investors, especially in bull markets and volatile markets. For example, in 2006 and 2007, more than 80% of equity funds achieved a return of more than 100%, while the proportion of individual investors was less than 20 12 years. Nearly 50% of equity funds have achieved a return of 5% to 30%. According to the survey, more than 50% of individual investors have lost between 5% and 50%. Therefore, the fund is still a good investment tool for individual investors to participate in the capital market.

All kinds of problems, whether China's stock market construction, economic development or asset management industry, can't be eliminated in a short time, and all need the rationality of the market as a whole to promote it. However, as investors themselves, we must measure our risk tolerance clearly and not blindly listen to the propaganda of sales staff. If your risk tolerance is weak, or the funds you want to use in the short term, you can't invest too much in a single stock fund to avoid being greatly affected by the risk of stock market fluctuations. Therefore, for individual investors, it is more meaningful to have a long-term investment mentality, choose appropriate fund products according to their own risk tolerance and renewal, avoid excessive pursuit of popular funds with outstanding short-term returns, pay more attention to funds with relatively stable long-term performance, and spread risks through fixed investment and portfolio allocation to obtain long-term stable returns.

Tip:

First, we should pay attention to arranging the proportion of fund varieties according to our own risk tolerance and investment purpose. Choose the fund that suits you best, and set an investment ceiling when buying partial stock funds.

Second, be careful not to buy the wrong "fund". The popularity of funds has led to some fake and shoddy products "fishing in troubled waters", so we should pay attention to identification.

Third, pay attention to the post-maintenance of your account. Although the fund is worry-free, it should not be left unattended. Always pay attention to the new announcements on the fund website, so as to have a more comprehensive and timely understanding of the funds you hold.

Fourth, pay attention to buying funds, and don't care too much about the net value of funds. In fact, the fund's income is only related to the net growth rate. As long as the fund's net growth rate stays ahead, the income will naturally be high.

Fifth, we should be careful not to "love the new and hate the old" or blindly pursue new funds. Although the new fund has inherent advantages such as preferential prices, the old fund has long-term operating experience and reasonable positions, which is more worthy of attention and investment.

Sixth, we should be careful not to buy dividend funds unilaterally. Fund dividend is the return of investors' previous income, so it is more reasonable to change the dividend method to "dividend reinvestment" as far as possible.

Seventh, we should pay attention not to talk about heroes in the short term. It is obviously unscientific to judge the pros and cons of the fund by short-term ups and downs, and it is necessary to make a comprehensive evaluation of the fund in many aspects and conduct a long-term investigation.

Eighth, we should pay attention to the flexible choice of investment strategies such as steady and worry-free fixed investment and affordable and simple dividend transfer.

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