What are the common mistakes in fund investment?

A friend asked: What should individual investors pay attention to when learning about stock investments?

Individual investors learning to invest should adhere to the following principles:

1. Principle of Gradual Progress

Many people want to quickly master investment in a short period of time. This is an impossible task. Investment requires the tempering of time and cannot be achieved overnight. It is enough to understand one investment issue every day, and it is not slow to spend 10 years learning about stock investments.

2. Principle of Systematization

Learning should avoid fragmented knowledge. It is best to first understand a large investment system, so as to have a comprehensive understanding of investment and lay the foundation for future in-depth learning. For example, the "Securities Qualification Examination Textbook" covers a systematic knowledge of the history of securities, securities regulations, trading systems, securities investment techniques, and other aspects. Only by understanding such comprehensive investment knowledge can one become a truly professional investor. Learning more systematic investment books is most helpful for investment.

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3. Principle of Integrating Theory with Practice

It is better to not trust books completely than to trust them blindly. The knowledge learned from books should be combined with your own investment practice. Reflect more and think more, so as to truly learn about investment, rather than becoming a parrot of the books.

4. In the process of learning investment, it is important to not only learn direct investment theories and methods but also to learn things that are indirectly related to investment. For example, it is also necessary to cover aspects such as investment psychology, investment philosophy, and business management.A friend of the fund investors asked: What are the common mistakes made in fund investment?

Here are the common mistakes made by fund investors:

1. Only buying one or two industry funds without understanding how to create a fund portfolio.

2. Being keen on buying funds managed by the hottest star fund managers of the year. In fact, fund managers who perform extremely well in one year often see a significant decline in performance in the following one or two years.

3. Buying funds at high market levels and resolutely not buying funds at low market levels. The correct investment approach should be to enter the market at low levels and resolutely not invest in funds at high market levels, and even consider reducing fund positions.

4. Holding funds for a short period, cutting losses as soon as there is a slight paper loss, and selling as soon as there is a slight paper profit. Most people hold funds for no more than one year. In fact, investors who hold funds for more than 5 years have a profit probability of over 90%.

5. Frequently trading funds, wasting a lot of transaction fees. Statistical data show that investors who frequently trade funds are basically poor-performing investment novices. True fund investment veterans hold for a long time and have a very low trading frequency.

6. Investing in funds that one does not understand or buying funds managed by fund managers one does not understand.

7. Investing in funds with a management scale that is too small, which carries the risk of liquidation.8 Engaging in irrational pursuit of market hotspots for fund buying and selling

9 Buying and selling funds blindly without learning.

What is the essence of fund regular investment?

So-called fund regular investment is a fool-style, regular purchase regardless of the market trend. This investment method is suitable for novices who know nothing about investment. The essence is to bet on the industry and the economy to rise in the long term. Investing in broad-based funds is fine, because the national economy is generally rising overall. If the industry is bet wrong, if an industry is long-term downward, then the fund regular investment can only be more and more loss.

So, there are two points to note in regular fund investment:

1 Try to invest regularly in broad-based funds such as the CSI 300 and S&P 500 that cover a lot of industries. Try not to invest regularly in a single industry fund. If this industry is a sunset industry, our fund regular investment can only be more and more loss.

2 Only invest regularly in industry funds that you are more familiar with or have a clear future prospect. This can ensure a higher probability that your regular investment will have a good long-term return.

The essence of fund regular investment is to give up the choice of investment timing. But in fact, for those with certain investment capabilities, appropriate timing selection will definitely result in higher investment returns. For example, increase the intensity of regular investment in a bear market, and reduce or even stop regular investment in a bull market. Such regular investment can have better investment returns.