What if the fund always loses money?
1 View investment target
The fixed investment of the fund also has a certain foundation, and the most important thing is to choose the investment target. Therefore, when we are still in a state of loss after long-term fixed investment, we need to quickly look at whether the fund we choose has stepped on the thunder.
The simplest introduction method is to look at the overall fund income and the income of similar funds. If the overall market of the fund is good and the income of similar funds is good, then we have chosen the wrong investment target. This will be reflected in the performance trend of the fund. Judging from the performance of the fund, there will be similar averages, such as the Shanghai and Shenzhen 300. For reference. The picture below is a bad situation.
The income of the fund is closely related to the fund manager, on the one hand, the investment ability of the fund manager, on the other hand, the investment philosophy and style of the fund manager, both of which can be inquired through the announcement. In fact, before the fixed investment, these tasks should be done, such as checking historical performance, checking fund managers, checking fund scale and so on. If we are in into the pit from the beginning, then the fixed investment means that we will dig deeper and deeper.
If the performance of the fund is similar to that of similar funds, it means that there is basically no problem with the fund, and it is likely that there is a certain degree of retracement in the current stock market.
2 Timely profit
The market may not rise for a long time, but there will always be a correction. If you can't stop profit in time and don't set a stop profit point, then the income will be limited and even a loss will occur. You can set the target profit-taking point first, save the fruits of victory when the market is high, and wait until the market is adjusted before entering the market.
However, if a fixed investment is made, the profit-taking point cannot be set too low to avoid frequent redemption, but it is difficult to achieve it if it is set too high, so a reasonable profit-taking point or interval is very important.
Generally speaking, we will have many ways to take profit, but if we don't know much about the fund, we can adopt the simplest valuation method to take profit, and the specific method can be found in this article. Related links: how to use the valuation take profit method to take profit with the fund?
3 Wait for the market to pick up.
Because the changes in the market are unpredictable, if there is no problem with the investment target we choose, we will unfortunately start to make a fixed investment at the high point of the market, mainly due to market adjustment. Our funds will also be in a state of loss for a long time, so we need to maintain our mentality and insist on fixed investment.
Moreover, in this case, the market is at a low point, which is the most suitable for fixed investment, because the cost can be shared continuously, and more income can be obtained in the case of future market recovery. From this point of view, it embodies the advantages of fixed investment, which enables us to overcome the fear of the unknown and accumulate at a low level.