When the market performance is sluggish, many investors will express their mood as "down".
It is normal to feel anxious when the market falls. After all, it is difficult for most investors not to take it seriously when they see floating losses on their accounts. But treating the market decline as a scourge is by no means the correct approach to investment.
Returns and risks go hand in hand. "Investment is risky, so you need to be cautious when entering the market" is by no means alarmist. It is normal for the market to fluctuate, and you must accept the existence of risks when investing. But investors need to understand that there is no market that only goes up but not down, and there is no market that only goes down but not up. It is actually not cost-effective to be disrupted by short-term fluctuations in the investment rhythm. Maintaining a good mentality is the magic weapon on the investment road.
In addition to adjusting the mentality, there are also some investment strategies that can
help investors reduce their anxiety, such as fixed investment.
fund fixed investment is an open-end fund investment conducted with a relatively fixed cycle and amount, automatic deduction or active purchase. It is a "lazy man" investment and financial management method that downplays the role of "timing". When the market shows a trend of first falling and then rising, through regular investment, you can continue to buy shares regularly during the decline, and then rely on lower holding costs to benefit during the rise. Finally, you can achieve the effect of increasing profits and draw a "smile curve".
In a volatile market environment, the fixed investment strategy of buying in batches can smooth investment costs and reduce investment risks to a certain extent. Since the fixed investment strategy needs to continue to buy shares during the decline in order to benefit from lower holding costs when the market recovers, for the fixed investment strategy, the decline is actually an opportunity. The logic of can allow investors to look at 's callback to from a different perspective and reduce anxiety.
Take the weekly fixed investment strategy of the CSI Media Index as an example. Assume that investors began investing in the CSI Media Index one year ago on December 24, 2021, and invested 500 yuan on the last trading day of each week (the closing price of on December 24, 2021, was selected as the benchmark price, and it was set as the unit net value, and subsequent transactions were calculated using relative net value).
Figure: Cost comparison of one-time investment and weekly fixed investment in the CSI Media Index in the past year
(Data source: Wind, as of 2022.12.20. The above data are only simulation calculation results. The actual investment income results are related to the fund invested, and may be significantly different from the simulation calculation results. Historical performance simulation does not predict future performance, so investment should be cautious)
According to the index point , if you invest in the CSI Media Index one-time one year ago, the investment cost will be constant at 1293.44 points. If you choose to invest weekly, the cost will fluctuate with the monthly investment cost. As the CSI Media Index has fluctuated and declined over the past year, the average weekly cost for the entire year will ultimately remain at around 962.62 points.
Figure: Comparison of returns from one-time investment and weekly fixed investment in the CSI Media Index in the past year
(Data source: Wind, as of 2022.12.20. The above data are only simulation calculation results. The actual investment income results are related to the funds invested and may be significantly different from the simulation calculation results. Historical performance simulation does not predict future performance, so investment needs to be cautious)
Although both strategies are currently in a state of loss, fixed investment reduces the unit cost of the index held during the market decline, thereby mitigating losses and reducing investment risks in the falling market. If the subsequent sector experiences a rising market, the fixed investment strategy will be able to obtain income with lower holding costs.
In short, the decline of is not terrible, it may even be an opportunity. Investors need to calm down and not be disturbed by short-term fluctuations. Paying attention to fixed investments and looking at the decline from a different perspective is a good choice to reduce anxiety.
Risk warning: The fund manager promises to manage and use the fund assets in accordance with the principles of honesty, credibility and diligence, but does not guarantee that the fund will be profitable, nor does it guarantee a minimum return.When purchasing a fund, investors should read the fund's fund contract, prospectus and other legal documents in detail to understand the specific situation of the fund. The performance of other funds managed by the fund manager and the past performance achieved by its investment personnel do not predict its future performance, nor do they constitute a guarantee of the performance of this fund. Fund investment requires caution.
