In the process of fund investment, I believe you must have encountered this situation. The fund rose well when you didn't buy it, but once you get involved, the fund cannot rise. There seems to be no problem with the fund itself.
Many investors are also confused.
Today, Financial Manager will talk to you about why a good fund that has been rising does not rise as soon as you buy it?
First of all, we need to make it clear that if you buy an equity fund, the source of the increase in these funds is the income from investing in stocks. No matter how good a company is, there is a limit to the increase in a certain period of time. Early warnings of increase often
With the increase in valuations and a certain degree of overdraft for future performance, the stocks with heavy holdings have risen too much in the early stage. It is completely normal for investors to buy at the node when the fund performance is excellent. It is completely normal to encounter a pause in the market.
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Hold and observe the fund patiently, and do not rush to sell the fund due to temporary difficulties.
The style of the A-share market in 2021 is changeable. Except for specific industry themes, it is very difficult to succeed in everything with one move.
Frequent hot spots and frequent industry rotations have always been characteristics of A-shares.
Funds tend to have outstanding performance when they happen to be in the tailwind period of industry rotation or style. Shortly after buying the fund, the market changes in style or industry rotation. This fund is different from other new trends.
Compared with the fund, it may be very dull.
There is no way to accurately predict the duration of the market style, especially for medicine, new energy, technology, etc. These industries basically have to take a break after rising for a period of time. As long as you hold patiently, you can always wait for the good market conditions of related funds and reap long-term gains.
Return on investment.
Don't pay too much attention to short-term fund performance, because this will lead you to use short-term performance rankings to evaluate the fund, thereby amplifying the evaluation of the fund's performance strength.
Of course, if the fund cannot rise, we cannot rule out that it is a problem with the fund manager's ability. The fund manager's investment ability circle is relatively fixed, and the amount of funds that his investment strategy can control will also have a reasonable range.
Gain a comprehensive understanding of funds and fund managers.
Be patient and wait for the value to bloom.