"Uninstall the fund app and focus on other things."
How to Deal with the Continuous Fall of Funds#
In fact, there is no need to be too anxious or worried.
【First】you need to understand:
- The stock market cannot always rise, fluctuations are natural;
- If you sell, the loss is inevitable;
- If you want to switch to other funds, can you guarantee that they are not worse?
- How much effort will you need to spend if you switch every time it falls? Is it worth it?
- Have you considered the significant costs generated by frequent trading?
【Then】don't rush to redeem it, here are the reasons:
- Taking the example of the 77-year history of stock trading in the United States from 1925 to 2002, the possibility of losing money is 3% if you invest continuously for any 10 years, while the possibility of losing money is 30% if you only invest for 1 year;
- Excellent fund managers and fund companies should be more anxious than you;
- Unless there are major changes in the fund company or manager, evaluate and switch at least every six months;
- Believe that the world is always getting better [this is an old optimistic thought].
【Of course】you must pay attention to the work of selecting funds in the early stage: [In my opinion, the preparation work for selecting funds in the early stage is more critical than the maintenance work in the later stage]
- Refer to Morningstar to allocate a fund portfolio that suits you;
- Invest in familiar areas rather than following speculation;
- You are using spare money, even if you lose it all, it won't affect your life.
If you are not satisfied, you can continue reading - the source of the above thoughts, and the mind map of the entire book are also attached.
Recommended Book - "Interpreting Funds"#
First, let's share the Douban rating:
![Douban rating of "Interpreting Funds"](https://cdn.jsdelivr.net/gh/doubleLLL3/blogImgs@main/img/Douban rating of "Interpreting Funds".png)
Starting from the book "The First Five Years of Work," it sparked an interest in financial management; then, Charlie Munger's "Poor Charlie's Almanack" resonated with his diversified thinking; then "The Richest Man in Babylon" and "Rich Dad Poor Dad" made me realize the necessity of economic thinking from a macro perspective; and finally, this book shares practical experiences in funds.
Mind Map#
Among them, the few points that inspired me the most are marked in the following image: using spare money, long-term investment, rebalancing, Morningstar...
 Mind Map of "Interpreting Funds".png)
I highly recommend reading this book yourself. The articles are easy to understand and will provide fund beginners with a systematic understanding of funds.
【Finally】, I wish you all find an investment strategy that suits you, and invest steadily and gradually.
Download Link#
"Interpreting Funds: My Investment Perspective and Practice (2nd Edition)" editable version
There are two versions: ①Original version (suitable for personal contemplation), ②Personal annotation version (suitable for quickly browsing key points)
Link: https://pan.baidu.com/s/1B6dT_F0-Rrx8nU-2BT6iQA
Extraction code: 36ia