Equity funds are mainly funds that invest in stocks, so the risk of equity funds is relatively high, but the income is also relatively high, attracting many people to buy. However, there are some taboos when buying stocks. So what are the taboos for buying stock funds? Today, Bian Xiao has compiled some fund-related knowledge for everyone. Let's have a look!

What are the taboos for buying stock funds?

1, chasing up and killing down

Equity funds fluctuate greatly. When the fund goes up, it will be very optimistic about this fund. But at this time, buying a fund is likely to be bought at a high level of the fund. Once you buy a fund, it will continue to fall. When it falls to a certain extent, you will redeem the fund. However, the fund is already at a low level. Just redeemed, the fund began to rise again. Therefore, when buying stock funds, remember not to chase up and down.

2. I bought too many stock funds.

Some investors are very afraid of losing money in stock funds, so they want not to put all their eggs in one basket, so they bought more than a dozen stock funds. However, the same is true of some stocks in equity funds. In fact, this does not achieve the purpose of diversifying risks. Funds with heavy stocks are prone to stock declines, and all funds fall. Therefore, when buying stock funds, remember not to buy funds with heavy stocks, and don't buy too many stock funds, which is easy to spread the time.

3. Didn't choose a good fund manager.

It is very important to choose a good fund manager when buying stock funds, because funds are for fund managers to invest in. Without a good fund manager, the fund is likely to lose money.

Should the fund fall to redeem the stop loss?

When the fund falls, the first thing to do is to analyze the reasons for the decline and prescribe the right medicine. If the market falls, most funds are falling, and there is nothing wrong with the fund itself, but if the fund market is not good and it continues to fall for a period of time, then when the fund rebounds, you can choose to wait for it to return to its original value.

If it is because of the mistakes of the fund manager or the bad stocks invested by the fund, the performance of the fund has been poor, and it has been ranked lower, always falling more and rising less, so it is better to stop and buy again. However, due to the different situation of each fund, it is necessary to analyze specific problems in the case of fund decline.

If the fund has fallen badly, such as losing 30%, the fund is still falling, and the fund has fallen for a year, then don't insist, stop the loss in time and keep the rest, and then enter the market after the fund rebounds.

The rise and fall of the fund is unpredictable, so when investing in the fund, we mainly look at the fund's heavy stocks. When choosing a fund, you should choose some promising heavyweight stocks, because if the heavyweight stocks invested by the fund go up, the fund will also go up.

Is a 20% increase in capital high?

The fund's increase of 20% is relatively high. When the general increase of funds is relatively high, you can consider redemption for profit, because funds fluctuate. When the increase of the fund is relatively large, or the fund has been rising for a period of time, to prevent the fund from falling, you need to redeem it in time and take profits to prevent the fund from losing money.

However, if you are optimistic about the fund, you can choose to redeem some of it and leave some for further consideration to see if there is any upward trend in the fund. When taking profit, you can set a take profit point, for example, you can redeem part of the profit 10%, and you can redeem part of the profit again, and so on. You can set the redemption share according to yourself.

The increase of each fund is different, but some funds are excellent, which can be doubled in one year, and it is also possible that the increase exceeds 100%, so you should choose a good fund when buying funds.

However, when buying a fund, remember not to chase after it. For example, a fund has a large increase and has risen for a week. At this time, some investors will buy because they can't stand it. At this time, it is very likely to buy at the high level of the fund. When the fund starts to fall, there will be losses.