How can the fund make more money?

The fund is not a financial product with guaranteed capital and income, so it is not sure to make money, but investors can increase the probability of making money in some ways. According to the statistics, those investors who make money generally like: long-term holding, portfolio investment and fixed investment.

How can the fund make more money?

First, long-term holding.

More than 95% of the funders who have held the fund for more than three years have positive investment returns, while more than half of the funders who have held the fund for less than three months have lost money. Long-term holding is not mindless persistence, but to choose high-quality track funds to hold for a long time, and redeem them after reaching their expected returns. The track refers to the fund industry. We should choose the emerging industry rather than the sunset industry; In addition, it depends on the return rate of fund managers

Of course, it is not necessary to hold the fund for a long time. It is also possible to sell high and absorb low at an appropriate frequency. If we can not only insist on long-term investment, but also grasp the opportunity to sell high and attract low, it is difficult to make money.

Secondly, it is more profitable to make reasonable use of portfolio investment than to invest in a single type of fund.

Most of the funds are more or less related to stocks, but even so, the risks and returns of these funds will vary greatly. Don't put eggs in the same basket. You can choose 3-5 funds each time, and these funds should belong to different industries, so even if the funds in this industry lose money, the funds in other industries may also make profits.

For different types of funds, the higher the return, the higher the risk and the greater the probability of losing money. If you only buy one type of fund, the high-risk investors may earn more when the market is good, but they may also lose more when the market is bad. Buying low-risk products won't earn much when the market is good. Of course, it's not easy to lose money when the market is bad. Anyway, it won't earn much.

If you use the fund portfolio, you can buy more funds with high risk when the market is good, and more funds with low risk when the market is bad, so that you can not only share the high income of the fund investment, but also avoid its high risk.

Thirdly, it is more profitable to choose dividend reinvestment than cash dividend.

For the same fund, if it chooses to reinvest dividends, the investment income of the fund is calculated by compound interest, while the investment income of cash dividends cannot be calculated completely by compound interest. Einstein once said that compound interest is one of the greatest inventions in the world.

A bull has summed up three tips for fund investment:

Buy when the valuation is low;

Sell when the valuation is high;

When the whole people began to discuss the stock market, they decided to stop the profit and put the bag in the bag.

I learned these tips a little late. I started to buy Boshi Theme Industry Mix (LOF) in 2017, and the highest profit was more than 10000, because I didn't know to sell when the valuation was high. Last year, I only made more than 1000 profits when clearing the position. Before that, I always believed that the fund needs to be held for a long time. After this lesson, I really understand how important it is to buy when the valuation is low and sell when the valuation is high!