How to make money from fund investment? What is the reason why fund investment does not make money?

Fund fixed investment is known as the preferred choice for lazy people's financial management, but there are also many people who lose money in fund fixed investment. Today, I will talk with everyone about why it is said that fund fixed investment is good, but some people still lose money?

How to make money from fund investment? What is the reason why fund investment does not make money?

Why do fund placements lose money?

The so-called fixed investment of a fund refers to your regular and fixed investment in a fund. Regular refers to a fixed time, which you set yourself;Quota refers to investing at a fixed amount, which is also set by yourself. There are three common reasons for fund investment losses:

Firstly, the admission time is incorrect.

Fund placements are often anti human, and many investors have similar attitudes towards buying stocks and funds. Chasing up and selling is a common behavior among people. When they reach the bottom, they dare not buy, and when they start to soar, they flock to them. But in fact, for buying a fund, chasing a rise is very dangerous, and many people make a big move when they see a fund soaring. At this time, fund prices are often relatively high, with a greater probability of losses than profits, which is why it is necessary to pay attention to fund valuations.

Price is a reflection of value. If the price of a fund increases too much, especially when it has far exceeded its own value, it is an inevitable trend for the price to decline and return to value in the future. On the contrary, if the price of a fund is relatively low, but it has a certain value, then the probability of the price rebounding to a normal value level is higher in the future. Buying a fund at an undervalued value has a higher likelihood of rising and a higher probability of earning returns.

Secondly, I did not choose the right fund.

If the initial investment of a fund lacks investment value, it is reasonable for the fund to lose money. For those funds that need to persist in long-term investment, choosing the right fund is crucial. Pay attention to choosing funds with potential for future growth and medium to long-term investment value to invest in.

For fund professionals, they can start by investing in index funds, such as CSI500Index, Shanghai Stock Exchange50Index, etc. If you really don't know how to place a subscription, you can also entrust the funds to a professional fund manager for management, such as purchasing a private equity fund that doesn't charge a subscription fee on the private equity ranking website.

Thirdly, the length of the booking time was not well controlled.

Making a fixed investment in a fund is not a one-time task, and mastering the timing is also the key to investing. The fixed investment time should not be too long or too late. Don't be too concerned about the short-term fluctuations and losses of the fund. With the extension of the fixed investment time, the fluctuation of returns in one or two days can be almost negligible. As an example, the following figure shows that fixed investment is not about the longer the time, the better. Instead, it is about learning to choose a reasonable redemption time.

The failure to choose a rational exit time, that is, to stop earning after the arrival of a bull market, is a major reason for the losses of fund fixed investments. In a bear market, fixed investments temporarily lose money and cannot bear initial losses. Investors stop fixed investments, but do not stop earning in a timely manner when it is suitable for the stop earning. Starting a fixed investment during a downturn in the market is actually buying a fund at a cheap price. When the market improves, the fund price starts to rise, and the returns will also rise.

What is the core logic of fund investment?

The logic of fund investment is actually simple: continue to make small purchases to reduce costs. The reason why investments lose money is actually largely because they are expensive to buy. Bear market funds in status are mostly ignored, and most investors buy funds during bull market high prices, which naturally leads to losses.

AThe stock market has always been bearish, bullish, and short. If a fund invests at a high point in the market but continues to buy during a decline, it can also continuously reduce the cost of holding positions. When the market rebounds beyond the continuously decreasing cost of holding positions, returns can be obtained, while if it buys at a location, returns can naturally be obtained when the market rises.

In fund placements, there is generally a perfect state mentioned, which is the smile curve. In the smile curve, even if you buy at a high level, but after a market downturn and long-term bottom investment, it will lower your average cost.

However, it is worth noting that the smile curve also has certain counter examples in practice. To make money in fund investment, it is necessary to understand the shortcomings of investment strategies, so as to better profitability. The difficulty of investment lies not only in persistence, but also in the strategy of stopping profits.

How to make money from fund investment? What is the reason why fund investment does not make money?

How to Make Funds Make Money from Fixed Investment?

Firstly, prepare a fixed investment plan and select the bidding documents before investing.

The most basic step in investing is to choose the investment target. Although we don't necessarily need to have a thorough understanding of the fund, at least we need to know what the current valuation of the fund we are going to invest in is, where the benefits are, and whether it is appropriate to buy it now. In addition, making a fund investment requires a long-term reduction of holdings, so it is very important to develop a reasonable investment plan and allocate funds reasonably. Making a fixed investment depends on one's own situation and should not put too much financial pressure on oneself. Usually, one will allocate the remaining funds after deducting necessary expenses every month30%-40%As a fixed investment fund.

Second, regulate good mood in investment.

Although fund investment is known as a lazy investment method and is relatively easy to execute, the most important difficulty in the investment process is emotional regulation due to the long time it takes. In times of market downturn, many people find it difficult to treat their capital account losses with rationality and calmness as they watch their losses continue to rise. They may want to sell it to stop the decline, but it is actually difficult to make money in fixed investment. Therefore, after selecting investment targets and allocating funds reasonably, it is important to remember the essence of fixed investment in order to better mediate emotions.

Thirdly, timely stop earning after investment.

When making a fund investment, the investment time should not be too short or too long. Since the investment time should not be too long, we need to know how to stop profits in a timely manner during the investment process. In terms of closing profits, valuation can be used to judge. If both the price and valuation rise to a relatively high level, then appropriate redemption can be carried out in batches to lock in profits. You can also set an annualized return target during the process of formulating a fixed investment plan, and when your position reaches the target, you can redeem it in batches to stop profits. When making a fixed investment, it is necessary to follow a rule, which is not to hesitate too much when stopping profits.

The key to regular fund investment lies in persistence. To make money through the investment method of regular fund investment, it is necessary to select high-quality funds, learn to hold them patiently, and set reasonable stop profit points, exchanging time for space.