Which mutual funds to choose. Investments in mutual funds
The question is often asked: How can I choose a PIF? Which fund to choose? As you understand, there is no universal answer here, since the banal truth says that all people are different, with different opinions, goals, views, amounts and other factors. What suits one may not suit another. That is, ideally, each investor should have their own criteria for choosing a mutual fund for investment.
However, in the field of finance there are laws that work regardless of the worldview of certain participants in this area + reasonable logic. Based on this, you can make a certain set of rules, following which you can choose a mutual fund. This is what we will try to do in today's article. Naturally, there will be no ready-made recipes, since the investor must be able to act independently + no one is immune from mistakes.
Choosing a mutual fund: a preface
This series of articles is intended for those who already know the basics of mutual funds (what are mutual funds and management companies, what are open, interval and closed funds, mutual funds of shares, bonds, etc.), but the question of choosing a mutual fund remains undisclosed.
Equity investment funds(mutual funds) - an excellent choice for investors who, on the one hand, are not satisfied with the relatively low profitability of bank deposits, and on the other hand, do not want / do not have the opportunity to be active in the stock market + who want to diversify their investments. Mutual funds are the Russian analogue of American mutual funds (mutual funds). Moreover, if the mutual fund industry in Russia emerged relatively recently (10-15 years ago), then in developed countries it has been around for decades and there is a lot to learn.
What are mutual funds and what are their types? How to choose the best voucher investment fund? What are the features of a closed foreign investment fund?
Hello dear friends! In touch is Denis Kuderin, investment expert.
Our new topic is investment funds, a tool that will help you save and increase your finances without much effort.
The article will be useful to everyone who is interested in passive income and wants to make investing a profitable business.
And now about everything in order!
1. What are investment funds and what are their functions?
Surely you have already heard or met the abbreviation "PIF" in articles on financial topics. So, it is about mutual funds - Mutual Investment Funds - that we will talk about today.
In a broad sense, investment funds are forms of collective investment, property complexes with a different structure.
The funds are joint-stock companies or organizations with shared ownership of participants, which are united by a common essence - the collective ownership of assets.
A few words about why mutual funds are needed at all. Their long-term and priority goal is to preserve and increase the capital of participants.
The existence of investment companies is due to the fact that a large number of citizens who have savings do not always have the skills of competent investment. During the period of economic stabilization, the number of funds increases; during a crisis, the activity of such organizations declines.
The way the funds work is extremely simple:
- participants (shareholders) contribute their share to the common boiler;
- managers invest in promising financial projects(securities, real estate, gold, venture funds, etc.);
- The profit from the turnover is distributed among the shareholders according to the contributed shares.
Mutual investments are classified as highly liquid assets. The participant can sell (sell) his share at any time if he considers it profitable or he just needs cash.
Another plus is that professionals manage the funds of investors, which significantly reduces financial risks. Managers know which investment areas are the most profitable at the moment and use their skills of successful cash investments.
An ordinary investor often has neither the time, nor the knowledge, nor the ability to competently financial management. Therefore, a professional player takes care of increasing the welfare of shareholders.
To better understand the principle of operation of mutual funds, I will give a good example.
Example
Ten friends decided to do agriculture and bought a large piece of land. To ensure that resources are used with maximum efficiency, they hire an experienced farmer, a dock in agricultural work.
In autumn they harvest. About a tenth of the crop (or profit from its sale) they give to the farmer, the rest is divided among themselves. The more efficient the work of a specialist, the more both the owners and the farmer will receive. That's how mutual funds work.
Management companies are vitally interested in the competent allocation of capital, because the size of their remuneration directly depends on this: they receive commissions from profits.
We list the main advantages of investment funds:
- professional asset management;
- diversification of deposits - risks are reduced due to investments in various investment instruments;
- minimum costs for financial transactions;
- transparent internal structure;
- large joint capital brings more profit than small single contributions.
And a small fly in the ointment: mutual funds do not guarantee mandatory income for their participants. As in any other investment transactions, there is a risk of loss of funds associated with unsuccessful investments, market falls and other objective factors.
And although the activities of the funds are controlled by the state (in particular, the FCSM - the Federal Commission for the Securities Market), there are no legislative requirements for the profitability of such structures.
2. What are investment funds - TOP-5 main types
Now about what are mutual funds. There are several criteria for classifying fund organizations.
According to the type of accessibility for deposits, they are divided into:
- open;
- closed;
- interval.
open, as the name implies, practice the free sale and purchase of shares. That is, you can become a co-owner of the company at any time, if, of course, there are sufficient resources to purchase a share.
The total amount of capital, as well as the number of participants in open funds, is not limited. Such structures usually invest in highly liquid and reliable financial instruments.
Closed funds sell the shares of the participants immediately after the establishment of the organization, after which the sale of shares ceases. Mutual funds of a closed type are limited in terms of their work, which are negotiated in advance.
Often such funds specialize in a particular industry. For example, they work only with the real estate market or invest assets in innovation.
Feature interval Mutual funds in that the sale of shares and their redemption occurs at certain intervals. Typically, interval funds work with stocks - they are engaged in professional exchange trading.
Another classification criterion is by investment area. The species that differ in this feature will be considered in detail.
Type 1. Equity funds
The most popular type of mutual funds. The purpose of such a fund is to make a profit from investing in shares of various companies.
Since manufacturing (and any other) companies vary in size working capital, Mutual funds are also divided into those that work:
- with small enterprises (turnover - less than $500 million);
- medium (from 500 million to 5 billion dollars);
- large (turnover - more than $5 billion).
The latter type of investment is the most reliable, but is designed for a long period (3-5 years). High-income businesses that are leaders in their industries are referred to by investors as " blue chips". The net profit from investments in shares of large corporations is 10-15% annually.
Obviously, when choosing a fund, one should take into account both the size of one's own investments and the principles of operation of the mutual fund. Some institutions prefer to work with stocks that are characterized by rapid (and not always predictable) growth, others choose more stable partners.
Another tip from experienced investors is that you should not put all your eggs in one basket, that is, do not limit yourself to one fund. If finances allow, it is better to create a "portfolio of funds", which will include shares in several organizations, different in structure and focus.
Type 2. Bond funds
Bonds are investment instruments with a fixed income (this is their difference from stocks, the value of which is constantly changing).
Funds that invest exclusively in bonds are called bond funds or bond funds.
Investments of this type bring regular dividends to investors - the interest on deposits and the profit from the difference in prices are summed up. The net profit of bond funds is low (from 6-8%), but the risks are minimal.
Depending on who issues securities, bond funds are divided into:
- state (federal);
- municipal;
- corporate.
Government bond funds are considered the most reliable. Papers issued by regional governments are also popular.
Corporate bonds are risky, but in case of a successful combination of circumstances, a very high-yield investment instrument.
Type 3. Real estate funds
Such organizations receive income from contributions to the construction and operation of real estate. Institutions have different specializations - some funds sell houses and apartments, others rent them out, and others specialize in operations with land plots.
Usually these are closed-end funds: this feature is due to the fact that housing (especially purchased at the construction stage) is sold longer than, say, liquid shares the Coca-Cola company.
Given the high cost of housing, the minimum initial share contribution of a participant in such funds is quite impressive - approximately $ 10,000.
Mortgage funds can be called a variety of real estate funds - closed-type organizations that earn on mortgage papers.
Type 4. Money market funds
These are the most conservative mutual funds in the world. Their essence lies in the fact that managers keep 50% of the participants' assets on deposits, and only the second half of the money is involved in current investment transactions.
Finances are invested in the most reliable instruments - bonds, currency. Experts consider funds money market a kind of alternative to short-term bank deposits. The risk of losing deposits in such institutions is minimal, as well as the profit of depositors.
Type 5. Balanced (mixed) funds
It is easy to guess that such funds work with various instruments. Usually these are bonds and stocks: the most liquid varieties valuable papers.
The tactics of managing a mixed fund requires experience and special knowledge from the management company. Market connoisseurs must constantly analyze the situation, buying and selling securities at the time of their maximum cost for shareholders.
The table shows the main types of funds and their basic indicators:
№ Fund types Yield Investment features 1 Equity funds From 10% and above Relatively high risks 2 Bond funds 6-8% Low risks 3 Real estate funds From 7-10% Designed for long-term investment 4 money market funds 7-10% Reliability and low risk 5 mixed From 12% and above Requires competent management 3. Peculiarities of check and foreign funds
A few words about the less popular, but also noteworthy varieties of investment funds.
Foreign funds allow you to invest your savings in foreign and international companies.
Such mutual funds are divided into:
- global(allow enriched by investing in the economy of other countries);
- international(engaged in investments outside the country of residence of the shareholder);
- funds developing countries (risky, but promising investments in the economy of developing countries).
Foreign funds, like any other, are open and closed. In total, there are about 50,000 funds in the world open for foreign investment.
What's happened check investment funds(CHIFs), everyone who lived in Russia in the 90s remembers. These structures were engaged in helping citizens manage voucher checks during the period of general privatization.
In the mid-90s, the number of CHIFs in the Russian Federation was in the hundreds. The further fate of such companies is a gradual merger, mutual absorption, reorganization and bankruptcy. At present, the vast majority of check funds have been liquidated.
4. How to choose an investment fund - 5 easy steps
The right choice of an investment fund directly affects the size of your profit and the safety of capital.
To begin with, I advise you to decide on the purpose of investment. What kind of income do you need - fast, reliable, constant? Depending on the ultimate goal, choose the type of fund.
The terms of investment, the amount, the attitude to risk are also taken into account. Remember that mutual funds do not guarantee a fixed profit: success depends on many factors - market conditions, the professionalism of the management company, and the economic situation in the country.
Now - step by step guide for novice investors.
Step 1. Determine the amount and term of investment
The most important stage is the determination of the size of the deposit and the terms of investment.
The smaller the amount, the narrower the circle available options. Solid capital opens up great opportunities.
Immediately decide what time frame suits you. Turnover periods in different types of funds are also different. So, investments in real estate involve long-term investments. In stock and bond funds, funds turn over faster, but at the same time, risks increase.
Step 2. Decide on the type of mutual fund
For capital holders with no investment experience, the best option is open mutual funds with high liquidity of shares. Participants of such funds have the right to withdraw their capital from circulation at any time. Interval mutual funds sell shares annually or monthly.
Experienced investors who know how to balance risks with returns use more specialized tools. For example, they invest in real estate funds, venture and mixed funds.
Step 3. Choose a management company
Management companies rarely engage in direct deception of depositors. They do not do this, if only because they are afraid of violating the law, which prohibits making unreasonable promises to investors.
There are also active And passive deposits.
In the first case, the investor can personally control the state of his investment portfolio:
- deposit / withdraw funds at any time;
- keep a balance;
- perform other manipulations aimed at achieving maximum profitability.
Such operations allow open-ended funds.
If you want to invest in shares and forget about them for a while, choose closed-end funds or interval funds.
Step 4. Compare the ratings of different funds
Ratings of mutual funds in the public domain are published on various information resources. It is better to use several sources and compare their performance. The pages of financial departments and state bodies enjoy the greatest authority.
There are many criteria that characterize the profitability of funds and the principles of their work - the amount of capital raised, liquidity indicators, various financial ratios.
Step 5. Making the final choice
The final choice is made after a comprehensive analysis of the fund and the management company. If doubts remain, I recommend consulting with experienced people or visiting thematic investor forums.
For beginners, the fundamental factor is usually the stability of the mutual fund and its popularity among other investors. But following the opinion of the majority does not always guarantee success.
5. What to look for when choosing an investment fund - useful tips for beginners
In general, mutual funds are reliable and affordable investment instruments. The activities of such institutions are extremely transparent, due to legal requirements and customer orientation.
When choosing a fund, pay attention to the following indicators:
- risk level (low, high, medium);
- work period;
- the minimum size of the share;
- availability of discounts, allowances and other benefits for shareholders;
- the amount of funds raised;
- price net assets;
- profitability (consider a long period, not just recent months);
- conditions for the exchange and sale of shares.
Knowledgeable people recommend choosing mutual funds by elimination, starting with the type of company and ending with the analysis of financial ratios. The more information you gather about the operation of the fund, the safer and more profitable your deposits will be.
6. The best investment funds - TOP-7 companies in Moscow
On the territory of the Russian Federation there are hundreds of mutual funds with different management structures and profitability. In order not to get lost in the ocean of mutual funds, we have chosen the 7 most reliable and profitable capital companies.
Territorial belonging to the Moscow region does not mean at all that residents of other cities cannot become shareholders of these funds. They can - the Internet allows you to remotely invest funds and withdraw them to your accounts in the same way.
SotsAgroFinance(manufacturing and financial company) - professional investment in precious metals, jewelry retail, mining.
The firm attracts private investment to finance its own highly profitable commercial projects. Investment agreements with individuals have a fixed interest rate. The company's prospects include increasing production turnover.
Finance-Invest- the oldest in the territory of the Russian Federation investment company operating since 1995. Specializes in the emerging markets of Russia and neighboring countries. The management core of the firm has been working in the field of profitable investments for more than 10 years and is constantly being strengthened by attracting professionals from international and Russian commercial banks.
Stocks or bonds
The main influx of funds over the summer came from bond funds - they were replenished by a total of 20.2 billion rubles. Investing in bonds is suitable for investors who are not ready to take on significant risks, since the debt market is less affected by current situation than the stock market, says Bogdan Zvarich.
What type of securities to invest in depends on what investment period the shareholder expects. According to experts, mutual funds of bonds are more suitable for short investments (up to three years), while stocks can be chosen for a longer term. According to Investfunds, for three years (from September 2014 to September 2017), the return on equity funds was more than 68%, the return on bond funds was about 60%. At the same time, the reverse picture may be observed for a shorter period: for example, from January to September 2017, the yield of bond funds was 6.7%, equity funds - 5.7%.
You can choose mixed mutual funds, that is, those that are invested in different instruments. “The longer the investment horizon, the more shares you can afford,” says Nikita Yemelyanov. At the same time, he believes that an investor can afford to invest about 10% of his portfolio in stocks for a short period.
Bond funds are not always unambiguously profitable, and when choosing them, experts advise paying attention to the quality of securities in which the company managing the mutual fund (UK) invests. “I would advise choosing funds whose portfolio is made up of first-class bonds of issuers, that is, securities of large companies and companies with state participation,” says Dmitry Alexandrov. The yield on bonds of small companies is usually higher, but the risks, primarily liquidity risk, are very high, the expert believes.
According to him, it is worth taking a closer look at the Eurobonds of Russian issuers. There are also such mutual funds, but in this case it is important that only senior issues are included in the fund's portfolio, and not subordinated ones (that is, those for which payments are made last in the event of the issuer's bankruptcy). “I would also advise investing in Russian rather than foreign securities, as this is a more understandable and controllable product for managers. In addition, they have higher returns than foreign ones,” Alexandrov notes.
FinEx Plus Executive Director Vladimir Kreindel believes that it is not worth choosing any particular asset class (stocks or bonds) and investing only in it, trying to guess the direction of the market. “A more correct way is to create and maintain a balanced portfolio, which includes stocks, Eurobonds, gold,” the expert says.
How to choose a fund
When choosing a mutual fund in which to invest, the shareholder should first of all look at the stability of the fund's performance, the predictability of its profitability, Nikita Yemelyanov believes. At the same time, the analyst does not advise focusing only on historical profitability. “This is, of course, an important parameter, but it is far from being the key one. The manager could get lucky and invest in an asset that grew with the market. It happens that one successful transaction can make the fund a leader in terms of profitability at the end of the whole year, but this does not at all guarantee that the investment strategy of the management company will continue to be successful,” says Yemelyanov.
Dmitry Alexandrov adds that the history of the management company and its reliability (according to rating agencies) are also important.
In addition, the size of the mutual fund is important. A fund's net asset value (NAV) is a publicly available measure that shows how much money a fund has, less liabilities, as of the calculation date. According to analysts, the larger the fund, the less dependent shareholders are on the actions of other large shareholders of the same fund.
And, of course, the shareholder should familiarize himself with the investment strategy of the management company. Lawyers note that this issue is controlled by the Central Bank, and deviation from the tools allowed in the strategies is prohibited. “Execution is monitored by both the Central Bank itself and the special depositary (assets vault), which approves transactions, conducts transactions at the request of managers and blocks if transactions are unusual or harmful to shareholders,” explains the managing partner law firm YurPartner Anton Tolmachev.
How much will the shareholder receive
Buying or selling a share of an open-ended fund is not difficult, explains Vadim Yarosh, head of the client relations development department at Kapital Management Company. The client needs with a passport and bank details contact the management company or an agent (usually banks that provide services for processing purchase and sale transactions with mutual funds act as agents). You can apply for a purchase or sale (redemption) on any business day. “The conditions for the acquisition and redemption are spelled out in the rules of the fund. You can withdraw part of the assets, in the same way, the investor can freely buy additional shares at will, ”says the expert.
Each fund has its own entry threshold. “On average, this is from 10 thousand rubles, but many companies set a lower threshold,” says Vadim Yarosh. Between the funds of one management company, in some cases, it is also possible to exchange shares without a commission.
When calculating the value of a share, the investor must take into account the costs - discounts and surcharges that must be paid during the transaction. When entering the fund, the investor pays a premium, the amount of which depends on the amount of the acquisition. This percentage is charged as a reward to the person accepting the application for entry and, according to the Law on Investment Funds, is no more than 1.5% (for some funds, the premium is 0%). For example, if a share costs 10 thousand rubles, and the markup is 1%, then the total cost of the share is 10.1 thousand rubles.
When a contributor decides to withdraw from the fund, he must pay a discount (fee to the person accepting the redemption request), which is no more than 3%. For example, if the value of the purchased shares has increased to 15 thousand rubles, and the discount is 1%, then 150 rubles will be withheld from this amount during the sale.
You also have to pay tax on your income. “If a person sells shares after three years of ownership, then there is no taxation at all, and if earlier than three years, then 13% of the income is charged tax agent”, Anton Tolmachev explained.
Cons of mutual funds
Despite the increase in the amount of funds raised in mutual funds, many analysts are skeptical about this instrument. “The attitude towards mutual funds has changed after financial crisis 2008. Then the funds showed very poor dynamics, and most of the shareholders did not manage to withdraw funds on time, having lost significantly, ”reminds Bogdan Zvarich.
Mutual funds can hardly be called the best option for Russian investor, says Vladimir Kreindel. "High costs and losses caused by the peculiarities of the work of mutual funds (for example, the need to maintain a high share of the fund's portfolio in rubles) can seriously worsen investment results," he said.
In addition, unlike bank deposits, investments in mutual funds are not insured by the state, even if the shares were purchased through a bank. And a portfolio of bonds can lose significant value. “Let’s say the fall in bond prices at the end of 2014 wiped out all the earnings from the previous two or three years,” says Kreindel.
However, he adds, these shortcomings do not mean that collective investment vehicles should be ignored, because the increased yield compensates for the possibility of drawdowns in the form of a temporary decrease in value.
How to invest in mutual funds and is it reasonable? What are the advantages and disadvantages of this type of investment. What funds exist, how do they work. Are there any risks, and what guarantees can the Management Company give. We will talk about this in this article.
What is a mutual fund? A mutual investment fund (UIF) is a property complex based on trust management of a management (specialized) company.
The purpose of the fund is to increase the value of its property. Its assets consist of property - shares - of the founders, who handed over the reins of the management company.
The management company does trust management within the law and in the interests of investors. The share of investors depends on the number of investment units. Investment share is a security that certifies the owner's ownership of the property and shows his share in the fund.
How to choose which mutual fund to invest in with the greatest profit?
By investing in a mutual fund, the investor acquires his share. The Fund will combine securities purchased with the funds of its investors, as well as cash that have not yet been used to purchase securities. Thus, the portfolio of the fund is created. The investor receives a certain share of this portfolio, depending on the funds contributed. The further future of the entire investment fund depends on the literacy and balance of the selected shares.
Investing in mutual funds is quite simple. To do this, you need to choose a management company and buy the desired number of shares of the investment fund. You can use the services of specialists - financial advisors- when choosing a management company.
Units can be bought directly from the UK, through agents, by mail, via the Internet, on the stock exchange (for private investors, in fact, also through the network).
Choose mutual funds by profitability and the last few years. At least it should be higher. average rate offered by banks on deposits.
Your profit from mutual funds depends on many criteria:
- professionalism of the management company (we study the statistics of work in recent years),
- management strategy and investment object (portfolio).
According to financial analysis stable but small profit, with minimal risk provide mutual funds that invest in bond funds.
If investment is carried out in the shares of companies of a certain sector for a long time, then you can get high profits, but the risks are maximum.
It is believed that mutual funds of mixed investments bring stable and high earnings. But based on the ratings of last year, most of them became unprofitable. However, if you are ready to have a hand in the distribution of funds yourself, choose a Management Company in which you can transfer funds between mutual funds, so by changing, for example, unprofitable industries to growing ones, you will remain in profit.
Also, if you are ready to take risks, pay attention to interval funds.
In each case, the choice is between risk and return.
Types of mutual funds
Mutual funds have the following classification: open, closed and interval.
- An open investment fund makes it possible to redeem and acquire shares at any time.
- In a closed-end fund, units can only be purchased at the start of the formation of the fund and can only be redeemed when it is closed.
- In an interval investment fund, the acquisition and redemption of units is carried out within a specific period, but at least once a year.
According to the areas of investment, mutual funds are divided into the following categories:
disadvantages
- This is a more risky instrument than fixed income solutions ( bank deposits) or even structural products.
- Part of the profit goes to pay for the services of the management company, and here several types of payments take place at once (details are in the contract with the company).
- A significant part of the funds are unprofitable (it is enough to study the ratings and statistics).
- What is stopping you from putting together a similar portfolio on your own? And you don’t have to pay a commission (you will pay a commission even if you go far into the red). Concerning index funds, then here there are no actions of managers by choice as such, just following the index.
- You do not make decisions about which securities to buy.
How much money do you need?
Novice investors must decide on the amount of money they want to invest in a mutual fund. In general, many management companies set a small entry threshold, if you have 10,000 rubles, you can start investment activities. However, the profit from such an amount will be very small, since, even with a significant increase in capital, the percentage of profit will be very small.
It is believed that it is worth starting with an amount of 50-100 thousand rubles. A beginner needs to assess the risk investment activity, it is worth considering in which industry it is better to invest. To do this, it is worth studying and analyzing the situation on the market, comparing it with the types and portfolios of funds, their statistics.
Why you should invest in mutual funds
To understand why it is worth investing in mutual funds, it is necessary to note their main advantages.
- First, it is a quality money management. Many investors do not have professional knowledge and skills to function independently financial markets. And high-quality professionals work in investment funds. The investor can only analyze the risk of invested funds, and then monitor the change in the value of the share.
- Secondly, the investor can use the share as collateral or transfer it by inheritance.
- Thirdly, funds can be received at any time (however, experts recommend focusing on investment lines from 3 years).
- Four is a low entry threshold.
- Five: a transparent investment infrastructure: the contributions of shareholders are stored in a specialized depository, separate from the money of the Criminal Code.
- Six: strict legislative regulation.
- Seven: No action is required on your part other than choosing the Mutual Fund itself.
Leading mutual funds of Russia
Selected reviews of various funds:
Mutual funds (UIFs) are funds collected from many investors and invested in certain assets (real estate, stocks, bonds, and more). At the same time, the management of common funds is carried out by professionals (Management Companies). Private investors choose only the type of assets they want to invest in.
How profitable is it to invest in mutual funds?
As with any investment campaign, investing in mutual funds also involves financial risks for the investor. As a rule, the higher the yield of a mutual fund, the higher the risk of losing the invested funds. In order to competently invest in mutual funds, it is necessary to evaluate possible losses and possible profits, view the history of the chosen direction.
To minimize the likelihood of financial losses and increase the chances of a significant increase in investment, it is recommended to adhere to the following principles.
Diversify your investments
You should not invest all your free money in one mutual fund. It is highly desirable to choose at least two. Investing in a mutual fund usually requires a relatively small minimum deposit. This allows for diversification. Novice investors are advised to choose one mutual fund with high yield and medium-high risks (for example, stocks). And the second is to secure the first - with low risks and, accordingly, low returns (for example, investing in bonds). If a profitable and risky mutual fund brings income - well, if not - it's not scary, the losses are compensated by the second mutual fund.
Invest for the long term
Asset value growth is a slow process. Investments in less than one year usually do not justify themselves. A period of two years is optimal for most mutual funds. When investing in bonds or other mutual funds with low level one year is enough risk. If investments are made in shares, it is better to wait 3-5 years, this is how long the economic full cycle lasts.
Make investments in selected mutual funds permanent
Repeated regular purchases of units in a mutual fund will help a novice investor increase the likelihood of making a profit on a mutual fund. According to statistics, this technique also allows you to significantly increase the final profitability. Of course, it is more efficient to buy shares when they are falling in price and sell them when they are rising. However, to predict the situation mutual fund only professionals have a chance, and even then not always. Therefore, if an investor takes his first steps in the investment business, then regularly buying shares in selected mutual funds is a more acceptable strategy for him than trying to predict the market.
Mutual investment funds for retail investors. How to invest correctly and how to choose an acceptable level of risk?