0 1 Is it feasible to buy more funds? In the process of investment, we can't accept death, but learn to be flexible in order to get a satisfactory return. My personal views on whether it is feasible for funds to fall and buy more are as follows: it is feasible for funds to fall and buy more, but we should pay attention to two more important premises. First, the market is in good condition, and the decline in net value is only a temporary withdrawal rather than a full commitment; The second is that the fundamentals of the fund are still of high quality.
① Market conditions
There are two situations in which the net value of the fund falls, one is a short-term retracement, and the other is that the market enters a bear market.
If it is only a short retracement, then the more you fall, the more you buy, which is equivalent to buying chips at a low level. After the retracement, you can quickly turn losses into profits; However, if the market enters a bear market, the net value will decline for a long time to come, and the more you buy, the more you lose. It can be said that it is far away.
Therefore, the first important premise of "buying more and more" is that the market is in good condition, and the net value decline is only due to the temporary withdrawal rather than the deterioration of market conditions, and it has entered a bear market.
② Basic quality.
We often say that the fundamentals of funds mainly include three aspects, namely: fund managers, positions and investment styles, and fund scale.
The fund manager is the income guarantee of a fund. For active funds, the fund manager is their soul. Many people buy funds for fund managers, but fund managers can be replaced, so we need to pay attention to the replacement of fund managers from time to time or whether there are new fund managers to join.
Of course, the addition of new fund managers does not necessarily prove that fundamentals will deteriorate. When we observe the position and investment style of the fund, we can judge it by the change of position concentration and investment style. Give a simple example: for example, we invest in a balanced fund, and our positions are scattered and the fluctuations are not too great. However, we should be careful when we find that the fund begins to hold a heavy position in a certain industry in the first quarterly report, and the risk will become greater at this time. For investors who pursue stability, the fundamentals of this fund can be considered as bad.
In addition to fund managers, positions and investment styles, we also need to consider the changes in fund size. When the scale of the fund is too large and limited to the "double ten regulations" of the fund, the performance may begin to deteriorate; When the fund scale is too small, it is necessary to be alert to the risk of fund liquidation caused by large redemption of institutions.
Therefore, another important premise is that the fundamentals of the fund are still of high quality. If the fundamentals change, you may not get high returns when the market is good, and you may even lose money because of a heavy position in an industry sector.
When should I buy and sell funds? The timing of buying and selling funds can be regarded as two issues, which are discussed from two directions.
(1) The opportunity to buy a fund.
Almost everyone will tell you to buy a fund at a low price, but they can't tell you where the "low price" is, because the market is changeable, and the best time can often be found only after. Although you can't buy at the lowest point, you can completely accept buying at the "second best point", that is, buying within a certain range.
For index funds, we can judge by the valuation area where the index is located. When the index is in the low valuation area, we can buy with confidence. When the index is in the high valuation area, we need to be cautious. Even if we want to buy it, it should only be a small position.
For active funds, it can be divided into two types. If the positions are mainly concentrated in a certain industry, this industry index can be used for valuation. If the positions are scattered, it can be judged by equal weight price-earnings ratio. It is safer to buy at an equal price-earnings ratio below 30%, and the risk is higher above 70%.
The main position of the fund must be bought in the low valuation area. When the index or equal price-earnings ratio is high, it is no longer suitable for buying large positions.
Supplement: It is really difficult to judge the timing of fund buying, that is, the most suitable buying point may not be found by using indicators. For novice investors, it is difficult to use indicators. Personally, compared with novice investors, they buy with fixed investment and can ignore the timing problem.
② Timing of selling funds.
Since the timing of buying funds can be judged by index valuation and equal price-earnings ratio, the timing of selling funds can also be judged by these two indicators. When the index valuation is in the high valuation area or the equal price-earnings ratio is above 70%, the fund can be sold in batches.
Of course, if you don't like to use indicators to analyze, you can also choose profit-taking strategies according to your own profitability. Common profit-taking methods include target profit-taking, valuation profit-taking, exit profit-taking and market sentiment profit-taking.
To sum up: funds can buy more and more, but there are two preconditions. One is that the decline of funds is a short-term retracement rather than a complete bear market, and the other is that the fundamentals are still good; The timing of buying and selling funds can be judged by valuation and equal price-earnings ratio. Buy when it is in an undervalued area or when the equal P/E ratio is lower than 30%, and sell when it is in a high valuation area or when the equal P/E ratio is higher than 70%. (Novice investors suggest using fixed investment combined with target profit-taking method for fund investment. )
Tips: The fund is risky, so the investment should be cautious.