First, investors hold index funds or theme funds.
If this index or the whole sector is overvalued, you can consider taking profit. The way to judge whether an index or a sector is overvalued is to see that the valuation of this index/sector is in the historical valuation quantile.
For example, the current valuation of the GEM index is at a historical high. At this point, investors who hold GEM index funds can consider profit-taking, at least partially.
There is also the pharmaceutical sector, and the valuation of the pharmaceutical sector is also in a very high position in history. Investors who have invested in medical theme funds in the early stage may also consider taking profits.
Second, investors hold non-theme active management funds.
Generally speaking, because excellent fund managers have the ability to select stocks, fund managers can completely sell stocks with high valuation and buy stocks with low valuation. For example, some pharmaceutical and technology stocks are now highly valued, but fund managers may choose other sectors or stocks with lower valuation and investment value to invest. Therefore, as long as the market as a whole is not overvalued, it can continue to hold.
At present, there are many cheap A shares for fund managers to choose from, and there is no need for fund investors to take profits in the current market environment.
When the market as a whole is in an obviously high valuation state, similar to 6000 points in 2007 or 5000 points in 20 15, investors can consider taking profit, otherwise there is no need to take profit. Personally, I think the Shanghai Composite Index is in a reasonable state before 3800 or even 4000 points. As for whether the market after 3800 points is overvalued, it should be combined with the specific situation at that time. At least before 3800, investors don't have to consider this problem of taking profits. In addition, many fund investors want to take profits. What to do with the money after profit? Maybe buy at a higher position in the future. My personal opinion has always been that we should give excellent fund managers longer time.
abstract
1. If you invest in an index fund, you can consider taking profits when the index or related sectors tracked by the fund are highly valued. You can make a profit at one time or in batches.
2. If investors hold funds managed by excellent fund managers, ordinary investors should not easily consider taking profits when the market is not obviously overvalued.
3. There are still many cheap assets in the market, and investors who invest in non-theme active management funds can temporarily ignore the topic of take profit.
If necessary, let me show you whether the fund you bought is suitable for profit-taking. You can contact me to get your personal information.