Funds are not like deposits and wealth management. Investors can't relax after choosing to buy, but should choose the appropriate way to increase or decrease their positions. Even if the funds are fixed, take profit or stop loss with the market changes. So what are the methods for the fund to increase and decrease positions? Let's take a look with Bian Xiao.

1. Increase or decrease positions when the fund loses money.

In essence, fund investment is that investors hand over funds to fund companies and fund managers for management, and use their own funds to invest in financial instruments such as stocks or bonds, so as to obtain the expected returns of the fund. Therefore, fund managers are extremely important in fund investment.

If the fund loses money, investors should first understand whether the loss is a short-term fluctuation or a stop-loss signal. Losses caused by general active factors are suitable for stop loss, such as fund manager replacement and rat warehouse.

If the loss is caused by market factors, that is, the whole market is in a downward environment, and the expected return of the fund manager's active investment outperforms the market composite index or its performance benchmark in the same period, then the fund manager can still be trusted and can consider adding positions at a low level.

Second, the pyramid addition and subtraction

From the market situation alone, funds can increase and decrease positions according to the pyramid method. Can be summarized into two:

1. When the market falls, you can choose to add positions in stages to reduce the investment cost. If investors predict that the price may rise, then the position of adding positions will change from changeable to short positions. On the other hand, if investors predict that prices may continue to fall, then the number of positions will change from less to more.

3. When the market price rises, you can choose to lighten your position in stages and take profits in time. If investors predict that prices may continue to rise, then lightening positions will change from less to more. On the other hand, if investors predict that the price may rise or fall, then the position of lightening will change from variable to less.

The above contents about the methods of increasing and decreasing positions of funds hope to be helpful to everyone. Warm reminder, financial management is risky and investment needs to be cautious.