The story
Today I heard a tragic story.
One of the ball Tsai’s classmates, from 2010 to a certain fund. I invested 300 yuan on the 8th of every month for six years. Finally all redemption yesterday, with net loss more than 200 wind up. She felt very happy, think every month to save 300 yuan, stick to it actually saved tens of thousands in the fund account.
The ball, however, does not agree. This is obviously a very sad story! Because of her fixed investment, the yield has been as high as 50% above. Unfortunately, she didn’t take it out and saw the proceeds go down the drain.
Oh! Wrong! It wasn’t just that she set her eyes on it, and then let it take money out of her bank account every month for six years without paying attention to the profits.
After listening to what she said, the ball boy felt completely unreasonable. This operation, it just sucks!!
She made a big mistake. What went wrong? Fund is cast definitively, can do not have stop loss, but must have stop surplus.
Fund cast also should stop profit
As a rule, any investment needs to have a stop profit and a stop loss. However the fund is fixed, stop loss is not so important, but must stop profit. As you know, the stock market is cyclical. If the returns accumulated over the years have not stopped when the bull market comes, your gains will eventually disappear with the arrival of the bear market.
The ball son’s classmates cast is a mixed fund, has a history of 10 years. Students in the process of fixed investment, at the beginning of 2015, fixed investment income reached 37%. In June 2015, before the stock market crash, the yield of fixed investment was over 50% at the highest. Unfortunately, during this period, she did not stop the profit redemption until all the gains disappeared. Even after the first slump, its fixed investment returns are still more than 20%, still have not been redeemed, missed one opportunity after another.
How to stop profit? You can set yourself a goal and sell it as soon as the revenue meets your expectations.
The classmate’s fixed cast trend
Funds should also pay close attention to market fluctuations
Some people feel, after having set investment strategy definately, no matter how the current net value of the fund is, it goes to put money into it automatically every month.
This is the way the ball boys treat the set – shot. Big mistake!
Fixed casting can replace savings, but do not equal to savings. Determined cast also is investment, it is to be below the premise that controls a risk, let income maximization. Generally we set the period of investment for three to five years.
Determinate cast early days, the fund lost money also need not panic. However, we have to pay attention to, is it already a bull market? If you reach the bull market’s relative high, or reach your profit stop line, sell.
In the process of fixed investment, if the stock market falls sharply, you can also increase the amount of the cycle fixed investment, at a cheaper price to obtain more fund shares. This also is one of the commonly used skills that fund decides to cast, mature decides to cast person should learn this point.
The fund of what type suits fixed cast?
The ball son that classmate does fixed cast, chose a mixed fund. Mixture fund can cast definitively? Sure, but it’s not the best option.
First of all, the bull and bear cycle of the bond market is more obvious and easier to judge, and the one-time investment is more efficient and profitable than the usual fixed investment. Second, the bond market is much less volatile than the stock market, and the expected return on fixed investment is much lower. Mixed fund has a lot of bond proportion, of course, not as good as the stock fund to force.
Of course, if you go straight to a bond fund, that’s the least interesting.
The fund that fluctuates more suits fixed cast more, so fixed cast stock fund is more appropriate, index fund is better.
The following picture is the smile curve that fund is decided to cast, the deeper the better, the fund with the bigger fluctuation suits to be decided to cast more.
