The fund is located in an overvalued area, so you can choose to sell it and lower your position appropriately. When investors invest in a fund, they usually buy positions in areas where the fund is undervalued and sell positions in areas where the fund is overvalued in order to obtain ideal returns.

Funds are divided into passive funds and active funds, and active funds are a kind of funds whose goal is to pursue performance beyond the market.

Passive funds (usually index funds) generally choose specific index stocks as investment targets, trying to replicate the performance of the index, rather than actively seeking to surpass the market. Therefore, the performance of the fund is consistent with the performance of its corresponding target. When the fund is located in the overvalued area, it shows that the bubble of the related target is relatively large, so if there is profit at this time, it should be sold and locked in its own income.