First of all, most retail investors in China have not yet distinguished the difference between investment and speculation. Many investors directly regard the stock market as a casino and stock speculation as gambling. Of course, if you want to gamble, you have to do it yourself to experience that kind of pleasure. If you use it to buy funds, it is not equivalent to giving money to others to gamble. In the US stock market, 80% are institutions and 20% are retail investors, while in China, 80% are retail investors and 20% are institutions. China’s stock market is less than 30 years old, and it lags far behind Western countries in investor education. Secondly, although most of the fund managers have master’s degrees from famous schools and are indeed stronger than retail investors in terms of professional knowledge, from the current situation of A shares, having sufficient professional expertise does not mean that you can make money in the stock market. In a bull market, the performance is not as good as retail investors, and in a bear market, it loses money like retail investors, so the performance of the fund is not very eye-catching, and it is difficult to attract retail investors to buy.
In fact, the fund still has many advantages, perfect risk control, and the investment team is more rational. If we summarize it in plain language, it can be reflected in the following aspects: unwillingness, unbelief, and disdain.
Unwilling
Beginners who have just entered the stock market have a heavy gamble, and gambling with fake hands is a very boring thing. It’s like playing mahjong. You pay others to play and you can’t even touch the cards yourself, so how can you do it? You have to go to battle in person every day, make a cup of hot tea, sit in front of the computer, chase the ups and downs, discuss the macroeconomic trends with your friends on the phone and WeChat, predict the ups and downs of the broader market tomorrow, recommend your favorite stocks to each other, and have a chat. It’s also fun, and it’s fun to lose, isn’t it?
Do not believe
The level of Chinese public fund managers is generally not high. There are many young men who have graduated for a year or two. The professionals are not professional, and their level is not even as good as that of an ordinary old investor. Therefore, most actively managed funds cannot catch up with the index. , and still charge a high management fee, then I might as well buy an index fund myself and give you the money for what? In the past few years, many public funds made a lot of money in their own management fees, but the investors who bought their funds lost a mess. Who do you think still believes you?
Disdain
More mature investors have their own stable trading system, and they will not leave their money to fund managers to take care of them. Their level is actually higher than that of most fund managers, and their strategies are more suitable. Myself, I can make money stably by myself, what do I want from you, right?
In short, China’s current public funds are now in a very embarrassing state, especially actively managed funds, which are basically getting smaller and smaller. Therefore, many public funds are now vigorously developing passive funds. If you want to buy funds If so, try to buy passive funds.
