---
title: "Long-termism and Contrarian Thinking: Four Core Concepts You Must Know for Fund Investment"
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/43270729.md"
description: "In recent years, mutual funds have increasingly become an important tool for public wealth management. However, the phenomenon of "funds making money while fund investors do not" remains prominent. The key to the problem often lies not in market fluctuations, but in deviations in investment philosophy. Only when the philosophy is correct does the method make sense; if the philosophy is skewed, no amount of effort will yield returns. I. Abandon the get-rich-quick mentality and face reasonable returns realistically. The essence of fund investment is to obtain dividends from long-term economic growth through professional management, rather than serving as a short-term speculative tool. Many investors enter the market with a "get rich overnight" mindset, expecting substantial returns in the short term, only to end up chasing highs and selling lows, frequently trading..."
datetime: "2026-08-07T11:27:57.000Z"
locales:
  - [en](https://longbridge.com/en/topics/43270729.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/43270729.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/43270729.md)
author: "[新用户_AYlj28](https://longbridge.com/en/profiles/2072687310259511296.md)"
---

# Long-termism and Contrarian Thinking: Four Core Concepts You Must Know for Fund Investment

In recent years, public mutual funds have increasingly become an important tool for 大众 wealth management. However, the phenomenon of "funds making money while fund investors do not" remains prominent. The key issue often lies not in market fluctuations, but in deviations in investment philosophy. Only when the philosophy is correct does the method hold meaning; if the philosophy is skewed, no amount of effort will yield returns.

![image](https://pub.pbkrs.com/uploads/2026/f3b34341a8fb9fe1f15c1674df75fdf5?x-oss-process=style/lg)

**I. Abandon the get-rich-quick mindset and face reasonable returns realistically**

The essence of fund investment is to obtain dividends from long-term economic growth through professional management, rather than serving as a short-term speculative tool. Many investors enter the market with a "get rich overnight" mentality, expecting substantial returns in the short term. The result is often chasing highs and selling lows, with frequent operations that backfire. The correct approach is: invest with spare money, wait patiently, and let time be your friend.

**II. Believe in the power of compound interest and persist in holding for the long term**

The magic of compound interest does not lie in how high the return rate is, but in having enough time. As returns are continuously rolled into the principal to accrue interest together, wealth can grow like a snowball. However, what truly tests investors with compound interest is the resolve to withstand volatility. Markets inevitably experience fluctuations and drawdowns; only by extending the cycle can economic growth smooth out short-term volatility. Many investors do not choose the wrong products but lose because they "cannot hold on"—panicking and exiting, turning floating losses into realized losses.

**III. View short-term performance rationally and value long-term verification**

Annual performance rankings are a focus of market attention, but products ranking high in the short term often perform mediocritly or even suffer significant drawdowns in the following year, which is common. The reason is that short-term performance is heavily influenced by market styles and accidental factors. What truly measures a fund manager's ability is resilience through bull and bear markets—the stock selection, timing, and risk control capabilities—which can only be fully verified over a three-to-five-year horizon. Short-term rankings can serve as a reference, but final decisions must be made by comprehensively considering long-term performance and drawdown control.

**IV. Avoid five major pitfalls to bring investment back to rationality**

In practice, investors repeatedly fall into several typical pitfalls: First, blindly following the crowd, entering at market highs and exiting at lows, doing exactly the opposite of what should be done. Second, ignoring signals such as changes in fund managers or style drift after purchase. Third, allocating products beyond one's own risk tolerance, focusing only on returns while ignoring volatility. Fourth, frequent trading; given the lag in fund net value disclosure and non-trivial fees, the success rate of short-term timing is extremely limited. Fifth, buying high and selling low; entering excitedly during market frenzies and hastily exiting during panics, going against the law of value. The rational approach is: dare to position at low levels, remain cautious at high levels, and use contrarian thinking to counter human weaknesses.

**Conclusion:** Investment is a cultivation of cognition. Funds are tools, but philosophy is the deciding factor. Less impatience, more patience; less conformity, more independence; less shortsightedness, more foresight. When the correct philosophy is internalized, time will naturally stand on the side of the investor.