First of all, it is necessary to find out whether the sharp decline in the net value of holding funds is caused by the reversal of the overall market trend. Investors can judge by observing the performance of similar funds.
If the performance of similar funds is similar, it is necessary to analyze the development stage of the economy, the current monetary control policy of the government, the ups and downs of the market since one stage and the general emotional state of investors, so as to further confirm which stage the market is currently in downward adjustment. If it is the initial stage of decline, we must decisively sell the funds in our hands; If it is the end of the decline, you should consider covering the position in batches after analyzing the advantages and disadvantages of the quilt fund. If you still can't judge, you may wish to wait and see for a while.
Second, compare the quilt fund with similar funds, and find out the advantages and disadvantages of the fund by investigating and comparing its performance in the same time period.
If its performance has been ranked in the top third of similar funds, it means that the fund manager is excellent and should be retained; If it is a pillar level, you can wait and see for a while; If its performance ranking is always in the last third of similar funds, it must be highly valued. Investors can continue to check their investment reports in recent quarters, review and analyze the changes in the proportion of their major asset allocation to the total assets of the fund and the changes in the top ten awkward stocks, so as to confirm whether there are problems such as buying high and selling low or low stock selection ability, and always chase the hot spots behind the market.
Thirdly, for the citizens who choose to invest in industrial funds, when they find that some of their funds are turning from strong to weak, alternative funds that have been depressed have also begun to show outstanding performance. For example, since 2009, financial real estate industry funds and consumer industry funds including food, beverage and medicine have been in a trade-off relationship, and the investment environment including policy factors has also confirmed this change.
Fourth, carefully review and examine their own psychological feelings in the process of investing in this variety of funds.
Before buying, are you particularly excited about the profit prospect of this kind of fund? After buying, I am always worried that the profit will turn into a loss due to the reversal of the trend? Once you really sell it, you will always regret it? In short, as long as I think about this kind of fund, I will feel very upset and even have a negative impact on the transactions of other kinds of funds. Most importantly, if you repeat similar psychological feelings every time you invest in such funds, it is likely that the risk level of such funds has obviously exceeded your psychological endurance.
You know, it is difficult for people to make objective and correct judgments under long-term great psychological pressure. As long as you have read some articles introducing international investment masters, these masters are well aware of the truth of "doing something and not doing something". Rogers will focus on which markets in the world are undervalued and have investment opportunities, and little research on individual stocks; Buffett, who is revered as a stock god, only invests in stocks that meet his own standards, is not interested in short-term market ups and downs, and has never set foot in network technology stocks. Therefore, no matter whether such funds are profitable or losing money at present, they should be converted into varieties that can match their own affordability as soon as possible.