A Question "Easy" Answer: The Longer You Hold A Public Offering Fund, The More Income You Will Get?

"Yi" answer: snowball rolling requires not only wet snow and long slopes, but also enough time for snowballs

We all want to see the return on investment snowballing up.

In a stable growth macroeconomic environment, historical data show that the longer you usually hold active equity funds, the more investment returns will be.

From the beginning of 2008 to the end of April 2021, the CSI 300 total income index has increased by 22%, but during this period, the market has experienced great ups and downs, and the gains are not the same at different time points.

Therefore, we may as well adopt the rolling calculation method, including all buying time points into our statistics.

We can buy and hold for one year on the first trading day of 2008, or buy and hold for one year on the second trading day of 2008. In this way, there can be more than 3000 buying points.

You can figure out the yield of buying and holding for one year at each time point, and then look at the average of these returns.

In order to avoid the influence of extreme value, we first remove the highest 10% and the lowest 10% data symmetrically, and use the remaining 80% yield data to calculate the average.

Taking the CSI active equity fund index (which can be regarded as the weighted average performance of actively managed equity funds), the following figure shows that the average return of buying and holding for one year is 10%; The average yield of buying and holding for 5 years is 47%, and that of buying and holding for 10 years is 94%.

The investment income of the fund is directly proportional to the holding time.

(Figure 1 Data Description: quoted from e fund Internet investment and education base, wind, China Securities active stock fund index, January 1, 2008 to April 30, 2021; Suppose 1 month = 20 trading days, 3 months = 60 trading days, 1 year = 240 trading days, and so on; The average cumulative rate of return is the truncated average, that is, the simple arithmetic mean of the yield of the remaining samples after removing the highest 10% and the lowest 10% samples; The past performance of the index does not predict the future, and the operation time of China's funds is relatively short, which can not reflect all stages of the development of the securities market.)

We also use a single fund to calculate, and on the whole, we still obey the rule of "the longer the holding period, the more income". The following figure shows the calculation results using 315 actively managed equity funds and partial stock hybrid funds established before April 1, 2011: the average return of buying and holding for one year is 12%; The average yield of buying and holding for 5 years is 64%; Buy and hold for 10 years, the average yield can reach 181%.

(Figure 2 Data Description: quoted from e-fund internet teaching base, wind, the calculation interval is from April 1, 2011 to March 31, 2021; The active equity funds include the equity funds and partial equity hybrid funds under the wind secondary classification established before April 1, 2011; The calculation method is the same as that in Fig. 1.)

Knowledge patch:

Where am I going to buy funds?

Public funds shall be sold by the fund manager and other institutions that have obtained the qualification of selling funds on a commission basis (hereinafter referred to as the selling institutions on a commission basis).

The fund manager refers to the fund company. The institutions with the qualification of consignment mainly include: commercial banks, securities companies, futures companies, insurance companies, securities investment consulting institutions, independent fund sales agencies, etc. It should be noted that not every agency sells all funds in the market on a commission basis.

Investors can log in to the official website and official app of the fund company to purchase the fund managed by the company, and can also query and trade the fund through the official website and official app of the sales agency. Investors must choose the formal official platform to download app, guard against illegal money laundering traps and investment traps, and safeguard their legitimate rights and interests.