Hunting the bottom, whether in the stock market or the fund market, is a very common word. Bottom-hunting can make the cost of holding positions lower, but bottom-hunting is about timing, so in order to accurately bottom out, we must first understand what bottom-hunting is.

What does fund bargain-hunting mean?

Fund bargain-hunting refers to buying when the net value of the fund is low. For example, a fund has been in a state of decline some time ago and recently fell to a new low. Investors feel that the follow-up is about to rebound and buy in time. This kind of behavior is called bargain hunting, which means bargain hunting.

After bargain-hunting, sell on rallies, so you can earn more, so bargain-hunting has always been pursued by everyone, but investors think that the bottom is not necessarily the real bottom, and the fund may still fall again. You thought you bought it in a low place, but you bought it halfway up the mountain.

If you plan to bargain-hunt, you can first look at the maximum withdrawal rate of this fund in the past three or five years. If the recent net value is close to the maximum withdrawal rate, it may be a good opportunity to bargain-hunting, because the maximum withdrawal rate of the fund is the biggest loss that occurs in a period of time.

For example, the highest withdrawal rate of a fund in the past three years was 30%, but in the same period, the fund has fallen to 25%, which is close to the highest withdrawal rate at this time. If it continues to fall by more than 30%, then you can add positions to bargain-hunting.

After reading the above introduction, I believe everyone has a better understanding of what fund bargain-hunting means. Just because the fund is bargain-hunting doesn't mean we have to buy at the lowest point. We often forbid me to buy at relatively low prices. In fact, it is feasible. If you don't know how to bargain-hunting, it is better to choose a fixed investment.