Will the fixed investment fund not lose money?

  ”Fixed investment, fixed investment, the more you invest, the more you worry…” Xiaojun came to MsC with an unhappy expression, and said that.
  ”Where does this start?” MsC asked suspiciously.
  ”Oh, don’t mention it, the wallet is deflating recently! Don’t you worry?” Xiaojun curled his lips and continued, “I said MsC, didn’t you say that fixed investment is the most worry-free investment method? Why I always make investment. After half a year, still lost so much?” Xiaojun asked puzzledly.
  ”What are you going to vote for?” MsC asked.
  ”Of course I selected it carefully! I decided to invest in the best-performing technology fund in the first half of the year.” Xiaojun replied triumphantly.
  ”In the past six months, the science and technology index has fallen all the way. It is no wonder that your fixed investment is not making money.” MsC suddenly realized.
  ”Isn’t it said that the fixed investment of the fund can diversify the risk?” Xiaojun asked suspiciously.
  ”Yes, it is to diversify risks, not to avoid risks.” MsC analyzed to Xiaojun, “You see, the technology index has fallen by almost 20% in the past six months, and your fixed investment has only lost 10%. Isn’t this diversification? Risk?”
  ”Is this considered diversification of risk?” Xiaojun replied dissatisfied, “I thought that fixed investment would not lose money.”
  ”This concept is outrageous.” MsC hurried to clarify:
  First of all, fixed investment is a way of spreading risk. However, if the market continues to fall, fixed investment cannot completely avoid losses.
  Secondly, whether a fixed investment loses or loses depends on the length of the fixed investment time. In the short term, fixed investment is greatly affected by market fluctuations; but in the long run, especially if fixed investment is more than 5 years old, the probability of making money is still very high.
  ”So…” Xiaojun asked thoughtfully, “Is the fixed investment as long as possible?”
  ”Yes, nor is it.” MsC gave Xiaojun an ambiguous answer.
  ”Ah? Is that right?” Xiaojun was confused.
  ”Say yes, first of all because the probability of long-term fixed investment is higher. At the same time, long-term fixed investment can also help us accumulate more assets, so that it is possible to achieve higher total returns.” MsC replied Xiaojun, “Say no. The reason is that the market is also fluctuating. Usually there will be a bull-bear cycle in 5-7 years. If we cannot stop profit in time at market highs, then as the market declines, our income will decrease. Therefore, the return of fixed investment There is no correlation between the fixed investment time.”
  ”Then how long do you think my technology fund should be fixed investment?” Xiaojun hurriedly asked MsC.
  ”I can’t make a package ticket.” MsC replied to Jun. “But if you leave now, it is obviously too early.”
  MsC said: “Tech funds are usually more volatile, and volatile funds are more suitable. Fixed investment. Because if the fund is more volatile, it is more able to open a position at a low position through fixed investment, thereby reducing the overall investment cost, diversifying investment risks, and increasing investment income. On the contrary, if the fund is less volatile, especially like a bond fund Such a fund with low volatility is often a better investment method than a fixed investment. Of course, a fund with greater fixed investment volatility will also increase the risk of investment, so long-term fixed investment is more necessary, and it is more worthy of long-term fixed investment. . ” ”
  I understand, do not be afraid to lose money fund investment, fixed investment insist enough. “Jun understood why.
  ”Basically correct.” MsC affirmed Xiaojun’s summary, and then added, “However, in addition to insisting on fixed investment, we must also look at the quality of the fund itself. If you hold a fund in the past 1 year, 2 year, 3-year, 5-year and other short and long-term can be ranked in the forefront of similar, then insist on fixed investment is completely OK. but if by ranking all, it may change the Fund will vote is a better choice. ” ”
  my funds But the champion base… I’ll take it first.” Xiaojun gritted his teeth and said, “Really, this technology fund is really like a scumbag. It’s too good for a while, and then it falls to an explosion… Well, my Little heart…”
  MsC nodded and replied, “So don’t look at this kind of scumbag, and let the fixed investment handle it automatically. It saves worry, effort, and emotion!”