Whether to redeem, we must first find out the reasons. What kind of loss is it?
1\ There is a kind of loss that makes you feel lost. For example, if I buy a fund, its share will increase from 1 yuan to 1.5 yuan, and then it will be adjusted back to 1.2 yuan, which is actually a normal fluctuation. But some people just can't get over it. They'll feel like they're missing 0.3 yuan.
2\ Another kind of loss is book loss. The net value of the fund falls below the net value when you bought it, but as long as you don't sell it, it is not a real loss.
It is still possible not to sell everything. Once it is sold, it means that there is no chance to turn over capital, and there will be transaction costs.
For example, if you withdraw like this, you are afraid of falling. Taking this as the reason for redemption, I think the investment fund is definitely not worth the loss.
The market decline is not so terrible. If it is a fixed investment of the fund, the decline is a good thing. Because the deduction cost is lower, you can get more chips for the same amount, and the total investment cost is lower.
Give a chestnut:
The monthly investment is 1 1,000 yuan. In the first month, the net fund value is 1 yuan, and the purchase cost is 1 yuan/share. However, in the second month, the net value of the fund fell to 0.5 yuan, and you can buy 2,000 copies with a fixed investment of 1 0,000 yuan.
Your cost becomes: 2000/( 1000+2000)=0.67 yuan/share.
That is to say, as long as the net value of the fund rises from 0.5 yuan to 0.67 yuan, it will be untied, and those who buy at the net value of 1 yuan will have to wait until the net value of the fund returns to 1 yuan.
Therefore, Buffett's father still has to believe what he said: others are afraid of my greed, and others are greedy for me. Now the stock market decline is really a good time to start.