Category: Money Tips Date: 2006-10-21
The so-called Road to Jane, the investment does not require a high IQ, but do not have much of the theory, in the stock market is often the simplest and most effective truth. Ming Dynasty writer Zhang Chao in the "You Meng Ying," pointed out: Can the world of the busy idle persons, can only busy people in the world of the idle. This phrase is used to explain the investment fund is pretty apt. Cast base, perhaps "busy" than "busy" would be more wise.
Fund is not a suitable investment tools for frequent operations. First of all, the Fund's transaction costs relative stock is higher; Second, the subscription and redemption of the cycle, at least in T +4 days or more, coupled with fund managers to adjust the market itself will, therefore, the Christian Democrats frequent transactions, in addition to increasing transaction costs, often can not make any difference.
In the present major bull market, many holders of the operation is "short, frequent, quick," floor-traded closed-end funds, ETF, and LOF many speculators appears to have been, and there is no difference between the stock, and low transaction costs and the T +1 trading system as a matter of days Kuaijinkuaichu facilitated. If Fengdao a Awkwardness of Fund for restoration may even be using the fund to arbitrage the ultra-short-term speculation.
In mature markets, is exactly the opposite.
For example the United States, since the last century since the 80's bull market, mutual funds assets in the structure of American families accounted for 47% of the dominant position, but the U.S. held by the Fund's average holding period is as long as 3-4 years, of which 70 % of the fund investors at least 10 years of "age-based" Eighty per cent of the above fund investors do not care about short-term market fluctuations, but rather as a long-term investment instruments.
The reason, first of all different motives for investment funds. United States-based investment fund holders, the main objective is to old-age pension to make up for inflation, long-term financial goals, rather than speculative. Data showed that the United States, more than 60% of the fixed payment by the holder to purchase mutual funds, pension plans, 92% of the fund holders, the retirement pension as a vote-based financial goals.
Second, the U.S. mutual fund transaction costs are not low. In general, the fee according to the amount of investment in size from a maximum 8.5% to 1% range. Some funds are called "low-fee fund" fee should reach about 3% -3.5%; some funds do not charge subscription fees, but to charge 4% -6% of the redemption fee; some of the funds not received subscription fees not received redemption fees, but the maximum annual fee of not more than 1.25% of transaction fees. In addition to domestic Monetary Fund, the majority of the fund subscription fee ranging from 1% -1.5% hold less than one year, then redemption fee of 0.5%, while the adoption of online trading systems can also enjoy four discount, well below the overseas markets.
Many investors may feel that long-term investments will miss many opportunities to buy low sell high, does not make a lot of money. However, our survey found that the real big money base in China is rarely the speculators, but "the original holder." Take the trend of the funds, invest in just one year six months, if the firm implementation of the "buy and hold" strategy, then the cumulative rate of return has reached 356.45%, no less than investing in stocks.
Investment Master Graham in his great book "smart money" and a book have pointed out that if everyone is always so obvious or doing something, you will make money. Sometimes it may reverse operation, while others are in the "busy", one may wish to select "idle" bar. In short, busy busy by others, a square is true idler.
