How to judge whether to sell the fund?
To judge whether the fund should be sold, we need to consider the following questions:
1. What happened to the market?
See if the market has undergone major changes and whether the market valuation is at a high level. Is the long-term trend of the market getting worse? If so, then redemption may be needed to hedge. If the market is only hit by short-term events, there is no need to panic.
2. What happened to the fund products you held?
Check whether there are any major events that change the original operation of the fund and whether it is worth continuing to hold. For example, whether the fund manager changes, whether the fund investment strategy changes, and whether the fund scale grows too fast will substantially affect the future performance of the product. If you change your expectations, you need to find the right time to save them at this time.
3. What happened to your own asset allocation portfolio?
For investment funds, how the market goes is really important, but what is more important is your own situation. If your partial stock position is really high, even if we think the stock market will strengthen later, we should consider redeeming some stock bases. Because our prediction of the stock market may be wrong, and the allocation of large-scale assets and the healthy proportion of various assets are the most important investment, and the situation of "you" itself is the core.
Investment funds must use idle money, and only money that can be used for a long time can be used for investment funds, because funds may be relatively biased towards medium and long-term investment. If the funds are not fixed, it is very likely that the fund investment will fail. If you need to recover the funds for other purposes, such as finding a better fund and changing funds, or having other better investment projects, or temporarily unable to pay attention to the funds and recover the funds first, you need to redeem them.
4. Think about whether there is a better way to invest?
If you are selling funds of funds and there is no better place to go, you will eventually return to the market. It is recommended to make long-term investment plans.
Generally speaking, fund sales are an important part, and investors should consider them carefully, because fund sales require handling fees. Those who hold funds for a long time may be exempted from handling fees. In addition, both fund selling and fund buying confirmation will take some time. If there is a wave of rise in the market during this period, then you will not enjoy the bonus of this wave of rise.