Joke Collection Website - Mood Talk - Why is it so popular to buy funds in the long term? Give me an example. I want an example~!

Why is it so popular to buy funds in the long term? Give me an example. I want an example~!

I would like to say a few words first: Investment funds may not necessarily make money in the end (this risk exists in both the short and long term).

Let me give you an example. Okay, let me pour some cold water on you first. Let me give you a negative example (Japan).

Most funds in Japan (limited to domestic investment fund companies, excluding "global allocation" Japanese funds. To be honest Yes, the return rate of some Japanese global allocation funds is still good, but they have also been hit hard by the loan crisis. I won’t mention their names to save their face.) The long-term return rate cannot even beat his own country’s national debt (). The interest rate on 20-year government bonds is a little over 2%. Yes, it is so low. It is ridiculous! This is relatively high in Japan). If you invest in such a stock market and such a fund, you might as well buy treasury bonds! ! !

To give another positive example, Peter Lynch, the world’s number one fund manager. During the 13 years that Peter Lynch served as the manager of Magellan Fund from 1977 to 1990, the fund's managed assets grew from US$20 million to US$14 billion, with more than 1 million investors in the fund, making it Fidelity's flagship fund. It was the fund with the largest amount of assets under management in the world at that time, and its investment performance also ranked first. The average annual compound interest rate over the 13 years was 29%. If you buy such a fund for a long time, you will be prosperous.

Okay, let me talk about some of my understanding of funds (for reference only)

1. The first prerequisite for long-term buying of funds must be that the fund company invests The country must be a country that can rise steadily in the future (global allocation funds can avoid some risks caused by the poor investment environment of the country to a certain extent, but local funds cannot. Japan is the most typical negative in this regard An example. A positive example is the American Global Select Fund: Franklin Templeton Fund, which has an annual growth rate of more than 10%. Don’t underestimate this rate of return, because this is an outstanding performance spanning more than half a century).

2. The second premise is that this fund has an excellent fund manager and an excellent fund team. This is very important, because good funds will still give good returns to fund holders in a bear market (few funds can do this, private equity funds are better, and most public funds cannot do this.) . In fact, it is difficult to select a good fund manager and team, because it is "selecting people" (my experience is that "selecting people" is more difficult than "selecting stocks", and people are always the most complicated). A good fund must not only be honest, diligent and solid, but also have the investment philosophy of the fund manager. However, this is something that ordinary citizens cannot do, but there is nothing they can do about it. Another point is that excellent fund managers are always unique, that is, when the market is biased, they can always stick to their own views and not follow the behavior of the majority of people in the market (Prince Alwaleed's "Citibank War" This fully illustrates this point. During the same period, public fund manager John Neff also did the same thing and went against the market! But sometimes the market is right, and this is the case with subprime mortgages, so the reverse operation does not mean that. It will definitely succeed. This is also an obstacle that makes it difficult for ordinary people to choose funds, but statistically speaking, it accounts for the majority of mistakes in the market.)

3. Let’s talk about domestic funds. Most fund managers can be said to be "not under the straw bag, nor above the straw bag, they are the straw bag." There is no insult here, it is the truth (think about 6,000 points to sing long, 2,000 points to sing short, is this logical? ? This kind of fund is like a villain who follows the trend. When the market goes up, they buy it. When the market goes down, they sell it. I am speechless! Anyway, I have lost confidence in China's fund managers (but I have full confidence in China's stock market, although it is now in devastation).

4. Index funds are a relatively stable investment type (because they cannot be manipulated by humans at will. Peter Lynch’s calculation shows that in the long term, 70% of professional fund managers in the United States People can’t beat the index). Again, as long as China grows steadily, index funds will definitely make money in the long run (especially through regular fixed investment).

5. Bond funds have very ordinary yields. But the reason why I talk about it here separately is because the country is cutting interest rates now, so there will be capital inflows in the bond market (there is a proverb in the foreign securities industry: When the stock market is cloudy, the bond market will be clear.

This sentence has a certain truth, especially when interest rates are cut, this sentence is even more correct. Note: The return rate of investing in China's bond market this year will not be less than 15%. Don't be surprised. This phenomenon is normal in foreign countries, but in China most people only care about the stock market and do not understand the bond market. Therefore, some shrewd people took advantage of the loophole. This year, these people made a lot of money in the bond market. 15% is considered a small amount. ).

6. Closed-end funds. He is mentioned here because it sometimes has a discount rate (that is, the trading price is lower than the net value of the fund, but it cannot be redeemed at will, and the closing time is very long), and it can be traded like a stock. So sometimes there are some arbitrage opportunities.

Just write this much, my hands are so tired. The reason why I write so many wordy words is that I found that when current financial colleagues sell some financial products, they only talk about returns and not risks, so I just made it a little more wordy. Please forgive me. If you still have any questions, you can add I am 649988316. I am still very young. If I say something wrong, please bear with me!