Fund lightening refers to the behavior of fund managers to reduce the investment ratio of a stock or asset. In the view of fund managers, lightening positions is to avoid the risks that stocks or assets may face, and also to recover funds in time to cope with market changes and protect the interests of fund share holders. Lightening positions will usually be carried out when the fund manager thinks that the valuation of stocks or assets has approached or exceeded its reasonable value.

Fund lightening is also an investment strategy, which is suitable for large market fluctuations. In some market environments, fund managers may reduce their positions in certain stocks or assets for hedging purposes, so as to reduce the risk level of the fund portfolio. Fund lightening can not only protect the safety of assets, but also enable fund managers to withdraw funds from the market in time to cope with the impact of market uncertainty.

It should be pointed out that the fund lightening does not mean that the fund manager completely gives up holding the stock or asset, but at a certain point, the fund manager will make a decision to lighten the position. When the market situation gradually improves, fund managers will also increase their positions and increase their holdings of certain stocks or assets. Fund lightening is an important means for fund managers to use different strategies to protect the interests of fund share holders and improve fund returns.