It is very normal to analyze whether the floating surplus fund should be safe

The fluctuation of the market. If we take a longer view of investment, we may find that this fluctuation is only a small twist in the process of market rise. Xiaobian here sorted out whether it is safe to face the floating surplus fund for your reference. I hope everyone will gain something in the reading process!

In the face of floating surplus funds, do you want to settle down?

I believe this is a concern of many fund investors, and it is also a source of anxiety in our fund investment process. Theoretically speaking, the fund chooses to redeem after making money. Unless the fund has other uses, we need to consider the issue of reinvestment. If the market continues to rise in the future, investors will probably buy the fund back at a higher cost, which is what we call chasing up. Therefore, whether the fund has a floating profit or not, we might as well return to our investment goal. If this fund is used for long-term investment, and we have strong confidence in this fund product at the same time, then try to avoid additional operations and increase the cost of entry and exit. The long-term income of the fund comes from the growth of corporate profits. This also means that as long as we are convinced of the long-term growth of domestic economy, excellent fund managers can obtain sustainable excess returns through active management ability. Then we can enjoy the lever of "time". The longer we stick to the right path, the greater our gains will be. Of course, different investors will have their own different investment arrangements. If this fund meets our pre-set rate of return expectation, and investors have short-term demand for funds, then they can choose to leave the bag for safety. However, such investors also need to really know their own risk tolerance, and avoid losing their "sense of gain" because the market continues to rise after redemption, leading to frequent timing errors.

Should we sell the fund in the face of losses?

The decline in the net value of the fund is not the reason for us to sell the fund, but to return to the fundamentals of the fund and re-examine our investment objectives before making a decision. First of all, we need to analyze whether the reason for the decline of the fund is due to the lack of investment ability of the fund manager or the market, and we need to observe it from a relatively long-term perspective. We think we should give it at least one year's observation period. If the fund manager's investment ability is poor, which makes the performance during the observation period worse than the average of the same kind or the market benchmark, we have no confidence in the fund manager, so we might as well choose redemption. If it is only because of the market decline, the release of systemic risks often provides safer investment opportunities to a certain extent. Don't sell the fund when the market is low. However, if the decline in the net value of the fund has made us sleepless, then we should have bought a product that is higher than our own risk tolerance. At this time, we can consider lowering our position or adjusting the fund. On the one hand, we can reduce the volatility of net worth by adjusting stock funds to hybrid funds or adjusting hybrid funds to bond funds. On the other hand, perhaps we have bought products with relatively concentrated positions, which have risen particularly well in the past two years, but the centralized holdings have also fallen sharply in the face of market correction. We might as well adjust our positions to some products with more balanced styles.

Can we choose a fund to increase positions when the net value falls?

Professional institutional investors, such as fund managers, all admit that timing success is very difficult, especially for ordinary investors. We are all familiar with the wisdom of investment. We are afraid when others are greedy and greedy when others are afraid. However, in the actual investment process, we always overestimate our risk tolerance, and we don't really invest in reverse. On the contrary, most investors chase after the rise and kill the fall, resulting in investors' real rate of return is not as high as the fund claims, or even a loss. Therefore, we might as well adopt a disciplined investment method, and invest regularly every month. The advantage of diversifying the investment time is to keep our investment cost at the average cost for a period of time and avoid buying at the highest point in the market. During this period, if the market falls, the fixed investment will help us to increase our positions and buy more fund shares. We don't need to spend more energy on market judgment, but choose a fund with excellent fundamentals to help us cross the bull-bear cycle and obtain good and stable medium and long-term returns.

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