A Question "Easy" Answer: Does The Investment Stock Fund Lose Money?

"Yi" A: ups and downs are normal. We can't predict the future, but we can stand at the current time point and let the data of the past 10 years speak.

For the investors who pursue "safety first", they are very concerned about whether they will lose money after buying stocks.

The risk of stock assets is high, and the return on investment is also high. Although the stock fund which mainly invests in stocks can reduce part of the portfolio volatility through diversified investment, the net value of the fund will rise or fall.

At the beginning of 2011, there were 306 active and partial hybrid funds.

Suppose you buy one of them randomly from January 1, 2011. Although you have experienced several big market fluctuations, you still hold on to it until December 31, 2020, and you may lose less than 1%. Among the 306 sample funds, 305 are profitable, only one fund has a loss (1 / 306 = 0.3%).

If we think 10 years is too long, we will shorten the time to 5 years.

Starting from 2011, it is assumed that a stock fund or partial stock hybrid fund is purchased at the beginning of each year and held for 5 years and sold at the end of the fifth year.

As shown in the table: at the beginning of 2011, only 8 out of 306 sample funds had losses, that is, 97.4% of the funds were profitable; At the beginning of 2012, the proportion of money making funds was 97.8%; At the beginning of 2013, the proportion of money making funds was close to 100%; At the beginning of 2014, the proportion of money making funds was 84.8%. At the beginning of 2015 and 2016, the proportion of money making funds was more than 90%.

This set of data tells us that as long as the long-term trend of the stock market is upward, then buy equity funds and hold them for a long enough time. Most funds are profitable, or the proportion of money loss is very low.

(Note: the data quoted in this issue are from e-fund internet teaching base, wind; The data range is from January 1, 2011 to December 31, 2020; The fund products in this table include stock funds and partial stock mixed funds under wind secondary classification; The number of products in each time interval is the fund products of the above categories established before January 1 of the starting year; Among the 611 products from January 1, 2016 to December 31, 2020, one product will be wound up on April 23, 2021; The rate of return is calculated based on the net value of the fund's reversion unit.)

Knowledge patch: what is active fund?

According to the investment concept, the fund can be divided into active fund and passive (index) fund.

Active fund is a kind of fund that tries to surpass the benchmark portfolio.

Passive funds do not actively seek to outperform the market, but try to replicate the performance of the index. The passive fund generally selects a specific index as the tracking object, so it is also called index fund.

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