The investment of index funds is simple and effective, and it is also a variety suitable for long-term holding, but index funds also need to take profits when necessary. We mainly consider whether an index fund should make a profit from three aspects.

Index valuation

Prices always fluctuate around value. The price of index funds is sometimes higher than the value and sometimes lower than the value. If you buy when the price is higher than the value, it is "expensive". When the valuation is too high, the investment value of the fund will decline. We can take the profit rate of return as a reference for the valuation standard. When the rate of return is lower than this value, it shows that the valuation of the index fund is too high and it can be considered to sell.

Achieve profit-taking or investment goals

The investment of index funds pays attention to long-term persistence, but it does not mean that it must be held foolishly. Before starting fund investment, we should set an investment goal or profit point for our investment plan. When the market environment is good and the fund reaches the profit point or investment target quickly, we should redeem the fund decisively and then consider entering the next round of investment instead of holding it foolishly.

Basic situation

For index funds, fundamentals are the biggest influencing factor. Fundamentals are closely related to a country's macro-economy. If you believe that the country's economy can develop in a good direction for a long time, then the fundamentals will also perform well, and the corresponding index funds will have long-term growth space in the future. If not, consider selling it.

Any of the above can be considered for sale, and at the same time, we can be optimistic about the domestic economic development.