In the past year, consumer funds gained gratifying gains, which opened a wave of fund bull market. At the same time, due to the stimulation of the money-making effect, more and more funds poured into the market, driving the corresponding stocks and funds to rise further. However, the influx of hot money and the irrational behavior of investors inevitably led to a certain bubble in the market. Recently, there has been a sharp correction in consumer funds such as liquor sector, and some investors have suffered heavy losses. Therefore, this goes back to the problem that investors often face. We have a lot of income from the consumption funds in our hands. Should we stop making profits or lighten up our positions? Although the stock valuation of consumer funds is relatively high, and there have been some adjustments in the near future, I think we should lighten our positions instead of taking all profits.

First of all, we must understand a problem. Whether the fund is profitable or not is not the basis for us to make profits or lighten up our positions. We can't sell it just because it makes money. If it loses money, I'll keep it. The result will only get deeper and deeper, which is tantamount to pulling flowers and watering grass. It's like we speculate in stocks. The value of stock, business model, enterprise managers and so on are all our concerns.

Because consumer funds are mainly composed of fund managers and their teams, through careful analysis, choosing the stocks of representative consumer companies to form a portfolio. When the stocks of consumer companies go up, the funds go up, and investors make money. Therefore, it can be seen from here that the most important factors that determine the quality of a fund are two aspects:

On the one hand, it is the ability and professional ethics of fund managers. When he is superior in ability and only wants to earn more profits for investors, we can trust him with funds to help. On the other hand, it is the valuation of the stock held by the fund. When the valuation of the stocks held by the fund is high, there will be some callback pressure on the stocks, so even the best fund managers will be helpless and smart investors will get twice the result with half the effort. Therefore, whether a fund should be held or not, two more important aspects are whether the stocks held by the fund are overvalued.

There is no doubt that the consumer industry itself is a good track, because it is closely related to everyone's life and is also a hot spot in recent years. There are also many bull stocks in history, such as Coca-Cola, Kweichow Moutai, Haitian Ye Wei and other famous investors, Mr. Yuan Lin called for only investing in dental-related industries to have a future. However, due to the unanimous expectation and the blessing of funds in recent years, consumer funds have come out of a wave of crazy bull market, and the valuation of consumer companies is much higher than the historical valuation, so there will indeed be some callback pressure.

However, as investors, we should not take all the profits. In fact, we can't predict the next trend of the market. Although the valuation is high now, it may be higher. If we take all the profits, we will miss more profit opportunities. Moreover, if we completely stop taking profits, it means that we are completely out of this sector and market, which will lead to our lack of market acumen.

To sum up, I suggest that investors reduce their positions instead of all, so that they can attack and retreat. When the market falls, we can buy more fund shares with the fund after lightening the position; When the market rises, you can enjoy certain benefits.