Do I need to consult relevant information to answer questions? According to years of study experience, if you can answer questions, you will get twice the result with half the effort. Let's share the relevant experience of how to cover the position when the fund falls sharply for your reference.

Should the fund cover its position when it falls sharply?

Whether the fund has fallen sharply or not requires investors to carefully analyze the reasons and trends of the fund's decline.

If the downward trend of the fund has been formed, it is recommended not to blindly cover the position and wait until the market picks up before considering buying. If the fund consists of multiple stocks, the net value of the fund will be affected when one or more stocks fall. If investors think that the future prospect of the fund is not good, or it is beyond the acceptable risk range, it is recommended to sell it immediately, instead of waiting for the market to pick up, because this may lead to greater losses.

If the decline of the fund is caused by the overall decline of the market, the investment strategy mistakes of the fund manager and other factors, then investors can consider buying gradually, but there are certain risks in this way. Investors need to decide whether to cover their positions according to their risk tolerance and investment objectives.

What does the fund cover the position mean?

Fund covering position refers to the repurchase behavior of investors in order to spread the cost after fund investment. When the fund price falls, investors can reduce the overall cost by buying the fund many times, which is called covering positions. Covering positions can be understood as an investment strategy, and its theoretical basis is that the return on investment is proportional to the risk.

Timing of fund covering positions

The timing of fund covering positions can be comprehensively considered according to the following conditions:

1. When the market where the fund is located falls, it is necessary to cover the position and dilute the cost.

2. Overvalued funds should be sold in time to avoid losses.

3. When there is a panic in the short term, it is necessary to make up the position in time.

4. The foundation loses money because of the market decline, so it needs to make up its position in time to avoid losses.

Strategic skills of fund covering positions

There are the following strategies and techniques for fund covering positions:

1. Fixed investment method: the fund is purchased at a fixed amount every month, which is not affected by market conditions.

2. Regular quota method: buy a certain proportion of funds on a regular basis, such as buying a certain share of funds on a fixed day every month.

3. Remedy method: When the fund price falls, buy the same share of the fund again to reduce the cost and improve the income.

4. Stop loss method: When the fund price reaches the expected decline, sell the fund to reduce the loss.

5. Breakthrough method: buy when the fund price falls to a historical low, and sell when the price rises to obtain income.

6. Balance method: when the market is unstable, invest less, and then decide whether to sell it after it is stable.

Calculation of fund cover position income

The calculation of fund coverage income is divided into two situations:

1. Take profit as an example: after the fund makes up the position, the overall cost will be lower than the net value of the fund, so the income will increase when the net value of the fund rises. Assuming that the fund has made a certain degree of profit before covering the position, then after covering the position, the income will be calculated according to the total share after covering the position.

2. In the case of loss: after the fund covers the position, the overall cost will be lower than the net value of the fund, so the loss will be reduced when the net value of the fund falls. If the fund continues to fall after covering the position, it may generate greater losses. At this time, we can consider continuing to make up the position and further reduce the cost price in order to obtain better profits.

It should be noted that fund investment is risky, and the net value of the fund may fluctuate due to the influence of market conditions.

The fund fell sharply. Do you want to make up the position? So much for the introduction.