Many small partners who can't stock will take care of their assets in the form of funds. I think this is a good thing, because it can cultivate our financial management concept and let us participate in the capital market. However, when some people invest in funds, they are not aware of the risks of the funds. Some funds are not as good as you think, and even greatly suppressed a single sector. This behavior is almost the same as stock trading.
How to treat the behavior of fund managers betting on a certain sector?
When the market is good, if a fund manager holds a particularly high position in a certain sector, then if the fund manager looks at the sector, it will bring huge benefits to the fund. Some people may have increased by 50% or even 70% in a short time, which is normal. However, when the market falls, the fund will also withdraw sharply, and some even withdraw more than 20 points.
Such behavior is a gamble.
We can understand that the investment fund itself is a risk-sharing behavior, because the fund's position is not a certain stock, but a comprehensive position is used to reduce the risk. However, some fund managers may focus on holding a certain type of stock or even hold more than 30% of a certain sector for the sake of fund performance. This behavior is very dangerous. I think this kind of behavior is a kind of gambling, which is not conducive to the interests of investors.
What is my personal opinion?
For these fund products with a particularly high position in a single sector, I suggest that you must keep your eyes open, because we can't always think about the benefits when investing, but also consider the risks brought by investment. Usually, if a fund holds too many positions in a single sector, then this fund is not our first choice. If conditions permit, try to choose a fund with even positions, so that the income is more stable and the risk is more stable. For investors, preserving the principal is a prerequisite. Don't always think about how much return a fund can bring you. Fund investment is not as simple as you think, and it will not make a person suddenly rich. Any investor with the illusion of getting rich overnight will be devastated in this capital market.