If the fund becomes "bad", it needs to take profit, stop loss, suspend fixed investment and switch in time. So, how to judge a fund is not good? Bian Xiao sorted out here how to judge whether the position fund is "deteriorated" for your reference. I hope everyone will gain something in the reading process!

Performance drops significantly.

The market has been changing, and it is impossible for any fund to become a "winning general" at any stage. Staged backwardness is an inevitable phenomenon. Otherwise, it will become a follower of chasing high and buying floating losses.

What we want to distinguish is the trend decline of a fund's performance, not the temporary mismatch of market style.

If it is a trend, it means that the fund manager may not keep up with the market for a long time (for example, at least one or two years), and the stop loss should be appropriate; If it is a temporary style mismatch, you can actually wait patiently and wait for the wind to come.

When we look at the performance, we should look at it in combination with the overall market situation, because sometimes the overall market situation may lead to poor performance of the fund, so we compare the single fund with the average market level, and then combine it with quarterly, semi-annual or one-year period to see if there is a big difference.

Then, adjust according to the expected change of your relative ranking when you buy, and see if the ranking has fallen too much. If a fund falls out of the previous 1/2 of the same type of fund for 2-3 consecutive quarters, it is necessary to consider changing positions. Instead of sitting still and expecting it to turn over against the wind, it is better to consider redeeming it in time and replacing it with a fund with strong comprehensive strength.

Fund manager change

If it is an actively managed fund, the fund manager is the key to achieving performance, followed by the fund research team. Because there are too many opportunities to make money in the financial industry, fund managers and researchers will frequently jump ship or change jobs. The average time of bull market in China since 2000 is about five years, and most fund managers have not experienced a round of bull and bear training.

When we invest money in a fund with good performance in the past and suddenly change the fund manager, we should be vigilant.

We need to look at the strength level of the new fund manager, such as his qualifications, past fund management performance, working hours, areas of expertise and so on. , consider in many ways. Every fund manager has his own style, and whether the investment style of the new fund manager is suitable for himself is also the focus we need to pay attention to.

The "good fund" we choose may change fund managers and research teams in the near future. Combined with historical experience, it is more likely that fund managers will change and succeed fund managers with poor ability. Therefore, adhering to the principle that killing one thousand by mistake is better than letting one go, once the fund manager changes, we will consider abandoning the pit in advance.

Large scale change

Whether it's a big increase or a big decrease, as long as the scale of disclosure, the duration of a quarterly report, or the news reports released by a new fund, the scale managed by the same fund manager has changed greatly (for example, several billion to two or three billion or vice versa), then I will reconsider whether to continue to hold this product or reduce my position.

Because if the fund is too large, the fund manager can't manage it. Generally speaking, the upper limit of active funds is below 5 billion, so is the fund manager of our fund also the manager of other similar funds? If so, then we need to consider the overall fund size of the same type of fund managed by the fund manager.

The theme fund has cooled down

If you invest in a theme fund, whether it is active or passive, its investment scope is relatively narrow, the theme has passed, and the market has cooled down accordingly, so it is difficult for the fund to keep rising.

In this case, it is particularly important to do a good job in matching and selecting funds. Once the market has passed or the related industry index is obviously overvalued, you can consider replacing it. If you are still attached to this fund, the performance may not be so good after the plate rotation.

There has been a major change in position.

We also need to regularly review the position of fund managers to see if there is a major drift in the investment style of funds.

A-shares have obvious characteristics of industry rotation, and their market styles are constantly changing in different industries. The industry that makes the most money this year may also lose the most next year. At this point, the fund manager is likely to give up the investment field in pursuit of short-term performance and chase market hotspots, resulting in fund style drift.

When the style of the fund drifts, the basic people should first judge whether the drift is normal or accidental. If the industry preference and style preference of funds have changed many times in history, it may be that fund managers like to look for opportunities in rotation. If the performance in recent years is good, it shows that the fund manager has good switching ability and can seize the opportunities brought by change.

If funds often drift to different fields, there will be great risks, because there are very few fund managers in the market who can continuously grasp the theme of industry rotation. If the fund performance fluctuates greatly due to style drift, it is necessary to consider which fund managers with stable style can stick to their "competence circle".

In short, if the fund in hand is "deteriorated", it is recommended to conduct redemption and conversion operations. Because of a bad fund, even if the market comes, it won't make much. It's better to buy a good fund that suits you.

Understand the above truth, it is not difficult to understand why the once "good foundation" has deteriorated. In investment, we should be friends of time, but it doesn't mean that we should spend every sum of money for a lifetime. As a citizen, in order to defend his wealth, he should also learn some financial knowledge, always care about whether the "good fund" he chose has "gone bad", find his initial heart through the process of analysis, recall the reasons for buying this fund at that time, return to normal expectations, and then make a scientific judgment.

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