Investment funds; The tool of immunity from repeating the 1999 stock market disaster – Tejaratnews

According to Tejarat News, it was the winter of 1998 when the twelfth government brought up the name of the stock market in its weekly meetings, and until the middle of 1999, they talked about the advantages of investing in the stock market and the risk-free nature of this market.

These praises of the stock market continued to the point where people sold the roof above their head and the car under their feet to get hundreds of percent profits by investing in a safe market.

In the first days of 1999, all the people of the society talked about the astronomical profits of the stock market and convinced each other to invest a little of their capital and property in the stock market so that they would get a good profit.

Due to the influx of heavy liquidity and manipulation of the stock market, the capital market gave its investors a very good profit until mid-summer of that year; But the nightmare of the stock market started on August 20, 1999, and the index fell from the two million range and could not reach the previous range until the last working day of 1401. Finally, after more than 2.5 years have passed since the fall of the stock market, on the first working day of 1402, the total index reached the peak of 1999.

But until today and until the moment of preparing this report, the portfolio of the shareholders who entered the stock market in 1999 is still in loss!

Experts believe that the reason for the loss of shareholders’ portfolios is due to the market conditions, the dollar value and P/E are two important components that can change the conditions of the market shares. Currently, the dollar value of the market compared to the year 1999 has a difference of almost 100 billion dollars, and on the other hand, the P/Es of the market at that time were in the range of 23 and now they have reached the number of 7, and these two factors have caused the shareholders’ portfolio to increase compared to three It did not grow last year.

It is true that the market is lagging behind in terms of dollar and P/E since 1999, but according to the conditions, it has a very good value and calculated investment in it can be profitable.

The right way to invest in the stock market

As mentioned, calculated investment in these market conditions can be profitable. If we look at the experience of 1999, we see people who entered the stock market without investment knowledge and bought a share just by hearing its name. These shareholders earned good profits in the first few days and weeks, but after some time, they faced losses due to the lack of value and bubble growth of the shares.

Now the index has reached the range of two million and most of the stocks in the market are valuable; But this time, it is necessary for investors to enter the market intelligently and with sufficient expertise so that the disaster of 1999 is not repeated.

One of the right and profitable ways to invest in the capital market is to use investment funds. To date, there are approximately 16 investment funds in the market, the number of which reaches about 390 funds, and each of these funds has its own risk and diversity; It should be mentioned that this year Tejarat News has published the performance and variety of investment funds in the form of various reports.

Fixed income funds, investing in fixed income securities (specifically government bonds), mixed, mixed with guarantees, bullion based, index, leveraged, sector, fund of funds, commodity based, market driven, bold, private, land and Building, real estate and projects are among the types of these funds, which number in the market reaches 390.

This means that for every investor with every type of skill, capital and risk power, there is a type of fund through which he can make indirect and profitable investments.

Most people who do not have enough time or knowledge to invest in the stock market go to investment funds; Because these funds give more profit than the index, and the investor can get his capital and profit at the appointed time without interference, stress and excitement.

The basic point here is that some investment funds can be profitable even when the market falls; Because they have a special combination of assets and benefit in any situation by using experience.

If we also examine the global stock markets, we will find that more than 80% of ordinary investors have invested in the stock market through funds; Because sometimes they don’t have enough knowledge and time. At the same time, stock market risks are high, and investment funds with their many years of experience can stand up to heavy market risks and not fall down with every heavy risk.

In general, the funds help investors to get more profit than the index, and to protect their capital and profits against heavy fluctuations. With these interpretations, it seems that in order not to repeat the bitter experience of 1999 and gain more profit, it is better for shareholders to go to investment funds.

Read more reports on the stock news page.