The fund market fluctuates. Many people choose to cut their meat when they see the decline of their funds, but they often hear many people suggest not to kill them. Instead, it is a remedial measure to cover the position when the fund falls. So why should the fund cover the position instead? How to make up the position correctly?

Why should the fund cover the position when it falls?

On the road of investing in funds, it is inevitable to experience market fluctuations, and it is also very common to have account floating losses in time. If you see a loss, it is actually not advisable to choose to cut the meat immediately, which not only directly turns the floating loss of funds into a real loss, but also completely eliminates the opportunity for subsequent funds to rebound back to their original value or even gain income.

In addition, if you cover the position when the fund falls, the cost of investing in the fund at that time is relatively low. After covering the position, the high cost invested before can be diluted. In the case of cost reduction and share increase, if the market rejuvenates and the fund rises later, it can make a faster profit.

How to make up the position correctly?

When covering positions is not blind, it needs to be considered in combination with its own situation.

Funds belong to medium and long-term investment products, and only long-term performance can represent their real value. If you hold the fund for a short time, it is likely that its short-term performance is not very good, so don't worry too much; However, if the fund is still in a state of loss for a long time, it is necessary to consider whether it is due to market factors, industry factors or the fund itself. If the industry is depressed for a long time, you can consider switching to fund products; If it is only interfered by some factors, and the long-term investment logic has not been disrupted, and the industry history has performed well, we can continue to observe. But if it is the problem of the fund itself, don't consider covering the position or even selling it. The problem of the fund itself can be judged by looking at whether the fund manager has changed, whether the top ten awkward stocks in the quarterly report have "stepped on thunder".

If there is no problem with the fund itself, you can consider covering the position, but it is best to follow the planned principle of covering the position and set up a "special fund" for covering the position. Make up positions in batches in proportion, pyramid make up positions or fixed investment make up positions are all ways that investors can adopt.