Recently, the market has been greatly adjusted, and the net value of many fund products has fluctuated accordingly. Many investors ask whether to redeem the funds currently held. Bian Xiao has adjusted whether the fund should be redeemed for more than half a month for your reference. I hope everyone will gain something in the reading process!

Reasons for recent market adjustment

Before analyzing whether it is necessary to redeem the held fund products, we must first understand the reasons for this round of market adjustment.

Since September, the popular sectors with heavy positions in many funds, such as consumption, medicine, science and technology, have been greatly adjusted.

Taking Shenwan's first-class industry index as an example, the adjustment range of agriculture, forestry, animal husbandry and fishery sector ranks first, with a cumulative decline of-14.02% since September; The pharmaceutical industry ranked second, reaching -9.09%. In addition, the food and beverage index fell by -9.03%, and communications fell by -5.69%. Since the beginning of the year, the adjustment range of these hot plate indexes has exceeded 5%. (Data as of September 22, 2020)

Some investors believe that people are more inclined to allocate hot sectors such as technology, consumption and medicine at the beginning of the year. These departments have performed very well and have great room for development. However, there is a certain pressure on the current valuation, so some institutional investors have appropriately reduced their positions.

In the long run, investment still needs to analyze which industries and enterprises have better profit growth under the background of economic recovery. This is the key to investment.

In the face of adjustment, should we redeem the fund?

Next, you can look at the funds in your hand and see how to deal with them.

Here, we can divide the fund products we hold into "index funds with high industry concentration and unable to adjust their positions independently" and "active management funds with relatively balanced industry allocation and able to adjust their positions independently".

1. For index funds in related industries

If you hold an index fund that has recently adjusted a large sector, because the index fund has a position regulation, which means that you have invested at least 90% of your funds in this industry, then your decision now depends on your view on the future of this industry:

If we think that the industry will continue to adjust in the short term, it may be a better choice to redeem part or all of the fund shares.

If you think that there may be a wave of rebound after the adjustment of the industry, you may wish to wait and find the right opportunity to sell on rallies.

If you are very optimistic about the future development prospects of the industry, then you don't have to worry too much about short-term fluctuations. Long-term investment and holding are the serious things.

2. For actively managed partial stock funds

If you hold an active management fund, you can actually save the step of "judging the future market trend of the industry".

This is because within the investment scope agreed in the product contract, the fund manager of the active management fund will flexibly adjust the position and industry allocation of the fund according to the market trend and market changes.

Therefore, if the funds used for investment have no other purposes, we may wish to pay attention to the latest views of fund managers and decide whether to continue holding them according to their views on the future market.

It is human nature to seek advantages and avoid disadvantages. When the market adjustment is large, it is normal to hesitate whether to "run away", but as fund investors, we still have some advantages, which can make us not be at a loss when adjusting the fund.

For example, you can wait for the short-term rebound opportunity after the plunge, and then sell it at a better price, without worrying about the situation that "the daily limit can't be sold".

In addition, when we hesitate to "run", perhaps the fund manager we entrusted also realized this and began to actively adjust positions and allocate industries. At this time, you can also compare the adjustment of the market and the performance of the fund's net value. If the performance of the fund's net worth is obviously better than the market, it shows that the fund manager not only has excellent active management ability, but also may have taken countermeasures for the upcoming adjustment.

Precautions:

First, we should pay attention to arranging the proportion of fund varieties according to our own risk tolerance and investment purpose. Choose the fund that suits you best, and set an investment ceiling when buying partial stock funds.

Second, be careful not to buy the wrong "fund". The popularity of funds has led to some fake and shoddy products "fishing in troubled waters", so we should pay attention to identification.

Third, pay attention to the post-maintenance of your account. Although the fund is worry-free, it should not be left unattended. Always pay attention to the new announcements on the fund website, so as to have a more comprehensive and timely understanding of the funds you hold.

Fourth, pay attention to buying funds, and don't care too much about the net value of funds. In fact, the fund's income is only related to the net growth rate. As long as the fund's net growth rate stays ahead, the income will naturally be high.

Fifth, we should be careful not to "love the new and hate the old" or blindly pursue new funds. Although the new fund has inherent advantages such as preferential prices, the old fund has long-term operating experience and reasonable positions, which is more worthy of attention and investment.

Sixth, we should be careful not to buy dividend funds unilaterally. Fund dividend is the return of investors' previous income, so it is more reasonable to change the dividend method to "dividend reinvestment" as far as possible.

Seventh, we should pay attention not to talk about heroes in the short term. It is obviously unscientific to judge the pros and cons of the fund by short-term ups and downs, and it is necessary to make a comprehensive evaluation of the fund in many aspects and conduct a long-term investigation.

Eighth, we should pay attention to the flexible choice of investment strategies such as steady and worry-free fixed investment and affordable and simple dividend transfer.

In the past two years, the returns of funds purchased by many investors are generally unsatisfactory. What caused the large losses of most funds? Mars, an analyst at Shanghai Securities Fund Evaluation Center, pointed out that, first of all, the essence of fund products is the combination of securities, and the performance of fund income is closely related to the performance of the underlying market. In the continuous decline of the stock market, it is difficult for equity funds and hybrid funds, which mainly invest in stocks, to achieve positive returns. In the case of rising stock market, most partial stock funds can often achieve positive returns. Therefore, it is impossible for funds to create myths and create high positive returns in the continuous decline of the market in recent years.

From the long-term performance, in most cases, the overall performance of funds is better than that of individual investors, especially in bull markets and volatile markets. For example, in 2006 and 2007, more than 80% of equity funds achieved a return of more than 100%, while the proportion of individual investors was less than 20 12 years. Nearly 50% of equity funds have achieved a return of 5% to 30%. According to the survey, more than 50% of individual investors have lost between 5% and 50%. Therefore, the fund is still a good investment tool for individual investors to participate in the capital market.

All kinds of problems, whether China's stock market construction, economic development or asset management industry, can't be eliminated in a short time, and all need the rationality of the market as a whole to promote it. However, as investors themselves, we must measure our risk tolerance clearly and not blindly listen to the propaganda of sales staff. If your risk tolerance is weak, or the funds you want to use in the short term, you can't invest too much in a single stock fund to avoid being greatly affected by the risk of stock market fluctuations. Therefore, for individual investors, it is more meaningful to have a long-term investment mentality, choose appropriate fund products according to their own risk tolerance and renewal, avoid excessive pursuit of popular funds with outstanding short-term returns, pay more attention to funds with relatively stable long-term performance, and spread risks through fixed investment and portfolio allocation to obtain long-term stable returns.

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