How Can Ordinary People Double Their Assets?

Perhaps you have already personally operated fixed investment in funds, but why haven't you made money, and even lost money?Blindly Chasing Gains and Selling Off Losses

The biggest enemy of investment is often human greed.

At the end of 2020, the fund market was doing well. You might have seen advertisements for purchasing funds at subway stations or other places, as if there was a nationwide craze for "raising chickens."

However, the reality is that when the market starts to soar, the number of securities accounts will surge, attracting a large number of people who want to make a quick profit by following suit. Most of these new account holders have little or no investment experience.

At this point, emotions spread, and the stock market will continue to see a large influx of funds. When even the elderly in your surroundings are rushing to enter the market, the stock market has gradually inflated a bubble that is not supported by the real economy.When the bubble inflates to a certain extent, it is bound to crash.

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Those who persist in long-term regular investment, due to their previous efforts and accumulation, will easily gain considerable profits when the market rises.

On the contrary, those who rush in to make a quick profit are not so lucky. They often buy funds or stocks all at once, and end up buying at the peak, which is the tail end of the bubble.

When the bubble bursts, what awaits them is loss and being stuck, which is being "harvested like leeks".

Such behavior is essentially not investment, but rather has a bit of a gambler's mentality.True long-term investments must be made with the principal guaranteed to be safe, in order to gain more returns.

Instead of gambling with your own principal on a "heads or tails" chance.

Never be a speculator, because in the long run, it is harmful to your wealth.

Overcome emotions

Fund regular investment can reduce the possibility of making huge investment mistakes by buying or selling a large amount at one time.

 You can invest 1000 yuan each month to purchase a certain fund, without worrying about the daily price and market reactions.

As long as the time comes, invest the same amount of money to buy, this approach can avoid your emotional impulse, buying at the highest point at one time, resulting in losses.

Even if the market fluctuates in the short term, it doesn't matter, because your investment is bought in batches.

If the market rises, what you bought at a lower price before will make a profit;

If the market falls, then you can continue to buy at a lower price regularly later, which can also lower your holding price.

What you need to do is to set up a fixed investment strategy, according to a fixed time interval, once a month or once a quarter, strictly execute.Determine the Period for Fixed Investment

Fund fixed investment is a long-term investment.

When we are making fixed investments, we should at least be mentally prepared to invest for at least 2-5 years, so that you can achieve good returns.

Therefore, the money used for fixed investment in index funds should be money that is not needed in the short term, and do not use living expenses and short-term expenditures for investment.

Otherwise, if your investment is halfway through and the returns have not yet reached expectations, or there is no profit at the current stage, you may need to use the money and have to sell the funds, wasting a lot of energy and time.Correct understanding   The most suitable group for fund fixed investment is actually office workers.   We can take out a part of the short-term unused funds from our monthly salary after deducting living expenses to make fixed investment in funds.   Most people often do not have a large amount of money to manage their finances. Fixed investment happens to be a small amount of investment, so this is also the most friendly aspect of index funds for ordinary people.   There is a Taiwanese couple who regularly invest their salary and side income into index funds every year.  Over the course of 10 years, through the fund's own earnings growth, they ultimately reaped a fund asset of 6.6 million yuan. After that, even without working, they could cover all expenses with the fund's dividends.

In another scenario, if you already have a sum of money that you want to invest, you should not buy it all at once, but follow a fixed investment strategy, divide the money into multiple parts, and invest regularly.

For index funds, we must have the correct expectations.

As long as we master the correct methods, it can bring us an annualized return of 10% - 15% per year.

But if you want to double your assets in the short term, then index fund fixed investment is not suitable for you.Investing in index funds can generate a compound interest effect. The returns we earn from each round of investment can be reinvested in the next round to produce compound interest.

For example, you can use an online "fund regular investment calculator" to make an estimate.

Let's say you invest a fixed amount of 2000 yuan each month, assuming an annualized return of 12%.

If you invest for 1 year, the estimated total return plus principal is 25,700 yuan (principal 24,000 yuan).

If you invest for 5 years, the estimated total return plus principal is 165,000 yuan (principal 120,000 yuan).Investing for 15 Years

The expected return plus the principal is 1 million (principal 360,000).

Investing for 30 Years

The expected return plus the principal is 7.06 million (principal 720,000).

Here you can see, this is the result of compound interest!

The key is to repeat simple things.

As long as we make long-term investments in index funds, what we can get is not only the doubling of assets, but also several times the growth of assets.Regular investment can help us accumulate wealth for the future.

It can be a monthly investment in a housing fund for children;

It can also be a retirement fund accumulated for parents;

It can also be a fund asset accumulated for oneself to retire early.

To cope with an inevitable expense in the future.If we rely solely on our salary income for accumulation, it will be very difficult, but by accumulating through the growth of index fund returns, it will be much easier.

Seeing this, I believe you have already made a good start. Spend some time to understand and learn more, and you can better implement a suitable fixed investment strategy for yourself.

In my public account, I have also recommended some introductory book lists for you to refer to, and there will be continuous updates later.