Being able to buy means that you have the ability to identify and choose the right fund target, which is already the beginning of success. However, the market fluctuates, so does the fund you buy. After buying, the net value of the fund is basically impossible to rise linearly.
Therefore, what determines whether your fund can make a profit depends on when you sell it.
It is natural that the net fund value fluctuates with the market situation, and we can't judge whether the fund can be sold by the core index of the net fund value.
Only by following certain trading rules can selling funds be based on the fund market for a long time. The following are several cases suitable for fund sales. Let's have a look.
The following three situations can be the main consideration when selling:
The first situation: achieve the income target and make a normal profit.
This situation is the most ideal and simple standard. You have chosen a very good investment target and set the expected income target, and the performance of this fund has reached the set income target as you wish.
In this case, we have to solve two main problems: the determination of income target and overcoming greedy investment psychology.
The determination of the income target can be based on the historical performance of the corresponding index of similar funds in similar environments, and then set a reasonable income target value according to our own psychological expectations.
You can't say that you bought a bond fund, but it is unreasonable to set your expected rate of return for one year at 50%.
For example, you set a profit target of 35% for this investment and prepare for the education reserve or travel fund. At present, the fund's income has exceeded this goal and it can be profitable.
Don't be too greedy if you can make a profit. You always want to earn more and redeem it. But to do it quickly, otherwise it is very likely to spit out the money earned.
The second situation: the fundamentals of the fund have changed.
When the fund was established, the "performance comparison benchmark" was agreed in the contract. The expected target set for the fund can be used as a "comparison target". If the performance of the fund underperforms the performance benchmark for a long time, it may be necessary to stop the loss in time.
It is important to pay special attention to the long-term performance here. If it's only one or two quarters, don't be too impatient. We can give more time to observe, because it is likely that fund managers are adjusting their positions or adapting to changes in market style and scale.
In this process, we can understand the reasons for performance changes, such as the change of fund managers, the change of fund investment strategies, or other circumstances.
The third case: for the purpose of asset allocation, the proportion needs to be adjusted.
This situation is aimed at those investors who are more planned and mature. Before starting to invest, such investors will generally set the allocation ratio of various assets to meet their own risk and income preferences.
For example, before investing, a portfolio with a ratio of stocks to bonds of 4: 6 was constructed, but due to the good performance of stock funds, the ratio of stocks to bonds in investors' portfolio was close to 5: 5. At this time, in order to maintain the original risk-return characteristics of the portfolio, some stock funds can be redeemed appropriately, or the allocation of partial debt funds can be increased, so that the portfolio can return to the stock-debt ratio of 4: 6.
Among investors, maintaining the balance of assets is also a very important thing in investment.
I hope the above contents are helpful to you.