If you lose 10%, it is not recommended to stop the loss as long as you buy a hybrid fund or stock fund (monetary funds and bond funds cannot lose 10%). Because a loss of 10% is normal, and the market may fall by 10% during any drop, and the corresponding funds will naturally follow suit.

Funds are financial products for long-term investment, not short-term. You basically can’t make money if you operate frequently in the short term, because short-term transaction subscription and redemption fees generally account for 0.65% (subscription 0.15%, redemption 0.5%), and other custody fees and management fees are included in it. carry.

Therefore, when choosing investment funds, it is best to make long-term plans and make plans for adding and reducing positions. It is not easy to choose a fund. After choosing it, we have to hold it for a long time and carry out operations of adding and reducing positions. For example, when a fund rises by 10% in the short term, we can plan to reduce our positions, and when a fund falls by 20% rapidly, we can plan to increase our positions. warehouse to spread the cost evenly.

For long-term holding funds, you can clear positions when the price rises to a certain percentage, such as 20%, 30%, but investment funds are not recommended to stop losses, even if the loss is 50%. Because the underlying assets held by hybrid funds or stock funds are mainly stocks, and stock prices fluctuate around their intrinsic value. What's more, each fund (hybrid fund or stock fund, the same below) must hold at least twenty stocks, which already diversifies the investment risk.

If the fund you purchased really loses 50%, either the fund manager of the fund you selected is a loser and specializes in chasing ups and downs, or the stock market crashes, that is, a stock market crash. It's unlikely that they'll be a loser. After all, they are all top students and have corresponding industry experience. If the stock market crash has dropped by 50%, it means that the end is near. You can choose to increase your position, spread the cost and wait for a rebound. If the additional money is the same, then the investment can be recovered by rebounding to 33.3% of the low price.

Of course! The funds above are general funds. If it is a graded fund, this will depend on the circumstances. However, even if a graded fund loses 10%, it is not recommended to stop the loss, because hybrid or stock funds are medium- to high-risk products, or even high-risk products, and a 10% fluctuation is very normal.