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Why should the fund lighten its position and cover its position?
Why should the fund lighten its position and cover its position?

Why should the fund lighten its position and cover its position? You need to consult relevant information to understand. According to many years' study experience, it can get twice the result with half the effort to find out the reasons for the fund to lighten up its positions. Here are some related methods and experiences for your reference.

Why should the fund lighten its position and cover its position?

The purpose of fund lightening and covering positions is as follows:

1. The purpose of lightening the position is to control the income-risk ratio to the lowest, that is, to sell the fund when the market is bad, put the profit into the pocket, and then reinvest at the bottom, so that the funds can achieve greater use value.

2. The purpose of covering positions is to control the income-risk ratio at the highest level, that is, to buy when the market rises sharply. At this time, the cost will be reduced. Even if the fund falls a little later, it will not affect our income. As long as we firmly hold it, it is possible to solve the problem and even realize the benefits.

It should be noted that both lightening positions and covering positions need to be operated according to the actual situation of individuals and the situation of the fund market, which needs careful consideration.

What is the reason for the fund to cover the position?

The reason for covering the position is mainly due to the high net value of the fund, the large investment when buying the fund for the first time, and the low investment income of investors. In order to improve the investment income, investors often choose to cover their positions.

Covering positions refers to the operation that investors buy the fund again within a certain period of time after the initial subscription is successful. This can reduce the cost of investors to buy funds, thus improving the investment income of investors.

It should be noted that the operation of covering positions is not omnipotent, and it cannot guarantee investors to gain income, nor can it guarantee that the net value of the fund will not fall. Therefore, investors need to rationally evaluate investment risks in combination with their own risk tolerance and investment objectives when covering positions.

How to make up the position of the fund in the plunge

When the fund falls sharply, covering positions is a common strategy, which can reduce costs and improve returns. Here are the steps to fill the position:

1. Determine the reasons for the fund's decline: First, determine whether the reasons for the fund's decline last for a long time. If it is a short-term decline, then don't make up the position. This may be an opportunity.

2. Calculate the margin: the margin is usually 10% to 30% of your investment amount. For example, if you invest 10000 yuan, then you can cover the position from 1000 yuan to 3000 yuan.

3. Step-by-step purchase: according to personal financial situation, you can buy more fund shares appropriately. For example, if the price of each fund drops by 5%, you can buy funds from 200 yuan to 600 yuan.

4. Set the target rate of return: according to the changes in the market, set your own cost range for covering positions. If your covering cost is higher than the actual net value of the fund for three consecutive times, then you need to adjust your investment strategy.

Remember, fund investment is risky, and even if you cover your position, you can't guarantee a stop loss. Before investing, please carefully evaluate your risk tolerance and investment objectives.

How to calculate the income after the fund covers the position?

The calculation method of the income after the fund price covers the position is:

1. Return = (current price-cost price) _ _ number of shares For example, the current price of a fund is 10 yuan, the cost price of covering positions is 12 yuan, and the number of covering positions is 1000, so the price return of the fund after covering positions is = (10.

2. Fund income = (current price-cost price) _ _ copies. For example, if the current price of a fund is 10 yuan, the cost price is 8 yuan, and the number of shares covered is 1 000, then the fund income =( 10-8)_ _ 1 000.

Calculation formula of fund covering position

The calculation formula of fund covering positions is: cost price after covering positions = (principal at the time of purchase+income at the time of purchase)/(quantity at the time of purchase+quantity at the time of covering positions) = ((5.6 _1000)+(5.3 _1000))/2000 = 5.5 yuan.

This is the end of the introduction of why the fund should lighten up its positions.