Is fund operation feasible

There was a popular saying in the stock market: "in 2007, the stock market was booming, the fund was booming, and the investors were more and more like the investors." This is not very pleasant to hear, but it vividly describes what many fundamentalists like to do most at present - to operate the fund.

Can funds be speculated? In other words, is there any profit in the operation of the fund? The basic people have different opinions, and even the financial experts have different opinions. It is mainly divided into the following two groups.

(1) "Long term holding, not frequent" faction

Many fund management companies have such data - in 2006, the net worth of most funds achieved an annual growth rate of more than 100%, and the highest yield of some funds even reached more than 200%. But statistics show that less than a third of these fund holders can get the same return. Most investors share only a fraction of this return. If investors pick and choose among many funds, buy and sell frequently, they will miss the opportunity of fund performance rising sharply once they are short, and waste a lot of handling fees.

(2) "Band operation, improve investment efficiency first" faction

Buying a stock fund is equivalent to buying a stock portfolio. Always paying attention to the trend of the stock market and constantly adjusting the funds you own are the quickest way to increase wealth.

There is no absolute right or wrong in these two views. Investors need to judge which method is more suitable for them according to their personal situation and market situation. Once you choose to hold for a long time, you should establish a healthy investment philosophy: the market may be volatile, and even the best fund will be at a low point in the market fluctuation. If you firmly hold the best fund, you will eventually get rich returns. However, it is necessary to remind those investors who are committed to realizing the rapid growth of wealth in the band operation that they should pay attention to the following points when using the fund as an investment and financial management tool

(1) Fund transaction costs are high

In addition to the higher subscription and redemption rates, if converted into other funds, there will be a part of conversion costs. When the net value appreciation income of the fund is not enough to cover the sum of all the expenses incurred in the fund transaction, the band operation will suffer losses. At the same time, the price of fund purchase and redemption is based on the unknown price, investors can not purchase and redeem the fund according to the real-time net value, which may further increase the transaction cost of the fund.

(2) If the net value of the fund does not change or changes very little, it is not suitable to operate blindly

For example, in the case of bond fund products with assets allocated to fixed income varieties, since fixed income varieties have a certain time value, investors should be very cautious in choosing bands among such varieties.