In the face of a sharp decline, fund investment should:

1. Check the holding funds

1. Check your holding funds. If it is an index fund with a low valuation or a reasonable valuation, there is no problem, just continue to invest. If you have idle funds, you can cover your position appropriately. But you need to control your rhythm and cover your position when the decline is large.

2. If it is an active fund, you can compare the performance with similar funds to see whether the performance lags behind by a large margin and whether it no longer meets the original reason for buying. If the performance is indeed unstable, you can take advantage of the decline to adjust positions and switch to funds that are more resistant to decline and have more stable performance. Of course, if it is difficult to adjust positions after a decline, you can also wait for a rebound to switch funds.

3. You cannot ignore funds whose performance has deteriorated and allow the net value of the fund to continue to fall. You must redeem or switch funds as soon as possible. Cut off losses and let profits run.

2. Formulate a plan to deal with the decline

1. Some investors said that they bought a fund for 500 yuan on Licaitong, observed the fund every day, and added positions if it fell. 200 yuan, if it falls a lot, add more positions. If it goes up, don't add to the position. It is unreasonable to add positions too frequently. If the fund falls every day, why should we add positions every day? Moreover, it is easy to add positions as soon as the market falls, and the idle funds in hand will be quickly added. When the market drops sharply and it is really necessary to add positions, there will be no money to add positions.

2. When adding a single position, you need to consider the market decline and the decline in the rate of return of the fixed investment fund, and formulate the discipline of adding a position. For example, increase your position every 5% or 10% drop until you run out of funds. Or the monthly fixed investment stipulates that the position is only covered once. After the position is covered, it continues to fall without covering the position, waiting for the next fixed investment time. This can control the number of positions added and prevent the stock market from falling all the way and falling further and further.

3. If there is no extra funds to cover the position, just insist on regular and fixed investment.

3. Do a good job in psychological construction of fund fixed investment

In fact, every time you look back after a big drop or after a stock market crash, you are digging a gold pit. If you invest in low-valuation index funds, don’t worry. As long as you don’t buy them when the stock market is at its craziest or overvalued, you will get good returns in the future.

4. Share the cost through fixed investment

1. In short, as long as it has not been sold, there is hope to earn back. At this time, we can share the risk through fixed investment in funds. For example, if you insist on investing 500 yuan in the fund every month, assuming you buy 500 shares in the first month, the average net value of each share will be 1 yuan. In the second month, the net worth fell by 0.2 to 0.8 yuan. Although your total assets are only 400 yuan, you can buy 625 shares for 500 yuan.

2. If the fund rises back to 1 yuan in the third month, the total assets become 1,125 yuan and the profit is 125 yuan. And your cost per share becomes 0.89 yuan. As long as the net value of the fund in the third month is not less than 0.89 yuan, you will not lose money. The most important thing is that if you continue to invest according to this idea, the cost of holding shares will become lower and lower in the future. Therefore, it takes a long time to invest in funds, and even three to five years is not a long time.

5. Things to note when investing in funds:

1. Pay attention to arranging the proportion of fund types according to your own risk tolerance and investment purposes. Choose the fund that suits you best, and set an investment limit when buying equity funds.

2. Be careful not to buy the wrong "fund". The popularity of funds has attracted some fake and shoddy products to "fish in troubled waters", so be careful to identify them.

3. Pay attention to the post-maintenance of your account. Although the fund is worry-free, it should not be left alone. Frequently pay attention to new announcements on the fund website in order to have a more comprehensive and timely understanding of the funds you hold.

4. When buying funds, be careful not to care too much about the net value of the fund. In fact, the fund's income is only related to the growth rate of its net worth. As long as the fund's net value growth rate remains ahead, its returns will naturally be high.

5. Be careful not to "love the new and hate the old" and do not blindly pursue new funds. Although new funds have inherent advantages such as price concessions, old funds have long-term operation experience and more reasonable positions, which are more worthy of attention and investment. .

6. Be careful not to buy dividend funds one-sidedly. Fund dividends are the return of investors' early profits. It is more reasonable to try to change the dividend method to "dividend reinvestment".

7. Be careful not to judge heroes based on short-term rises and falls. It is obviously unscientific to judge the quality of a fund based on short-term rises and falls. Funds still need to be comprehensively evaluated from multiple aspects and examined over the long term.

8. Pay attention to the flexibility to choose investment strategies such as stable and worry-free fixed investment and affordable and simple dividend transfer.

Extended information:

Balanced position adding method:

1. Set a drop, divide the added funds into several equal parts, and add one for each drop reached. Part warehouse.

2. For example, set the decline to 10%, add a total of 30,000 yuan in funds, and divide it equally into 3 parts, each of which is 10,000 yuan.

3. The fund fell by 10%, so the first time I added a position, I added 10,000 yuan;

4. The fund continued to fall, and it fell by 10%, and I added a second position. , the capital to increase the position is still 10,000 yuan;

5. If the fund continues to fall and falls another 10%, increase the position for the third time and buy all the remaining 10,000 yuan.

6. Finally, the bullets are fired and wait for the market to reverse.

Reference: Fund Baidu Encyclopedia