Bo2SS

“Uninstall the fund app and focus on other things.”

How to Deal with the Continuous Decline of Funds?#

Actually, you don't need to be too anxious or worried.

【First】 you need to understand:

1. The stock market cannot always be on the rise; fluctuations are natural;
2. If you sell, that loss is inevitable;
3. If you want to switch to another fund, can you guarantee that it won't be a worse fund?
4. If you switch every time it drops, how much energy will you spend? Is it worth it?
5. Have you considered the significant costs incurred by frequent trading?

【Then】 don’t rush to redeem it, here are more reasons:

1. For example, from 1925 to 2002, in the 77 years of U.S. stock trading history, if you continuously invested for any 10 years, the chance of loss is 3%, while if you invest for just 1 year, the chance of loss is 30%;
2. Excellent fund managers and fund companies should be more anxious than you;
3. Unless there are significant changes in the fund company or manager, generally, you should evaluate and switch at least every six months;
4. Believe that the world is always getting better [this is an old optimistic thought].

【Of course】 you must pay attention to the initial selection of funds: [I believe that the preparation work for selecting funds initially is more critical than the maintenance later]

1. Refer to Morningstar to configure a fund portfolio suitable for you;
2. Choose to invest in areas you are familiar with, rather than following the trend to speculate;
3. You are using spare money, and even if you lose it all, it won't affect your quality of life.

If you want to read more, you can continue below — the source of the above thoughts is also accompanied by a mind map of the entire book.

Recommended Book — "Interpreting Funds"#

First, let’s share the Douban rating:

Starting from the book "The First Five Years of Work," it sparked my interest in financial management; then to Charlie Munger's "Poor Charlie's Almanack," I strongly agree with Master Munger's diversified thinking; followed by "Money Dog" and "Rich Dad Poor Dad," I realized the necessity of economic thinking on a macro level; until this practical sharing book on funds.

Mind Map#

Among them, the points that inspired me the most are marked in the image below: Use spare money, invest long-term, rebalance, Morningstar...

I highly recommend reading this book yourself; the article is easy to understand and will provide fund beginners with a systematic understanding of funds.

【Finally】 I wish everyone finds an investment strategy that suits them, and invest steadily, bit by bit.

Download Link#

"Interpreting Funds: My Investment Views and Practices (Second Edition)" editable version
There are two versions: ① Original version (suitable for personal reflection), ② Self-marked version (suitable for quickly browsing key points)
Link: https://pan.baidu.com/s/1B6dT_F0-Rrx8nU-2BT6iQA
Extraction code: 36ia