Do funds that have already made money need to stop making profits, and when should they stop making profits? How to get higher profits? This is actually a question with no standard answer. Everyone has different income goals and investment purposes, so they have different investment strategies. Today, Bian Xiao will share with you whether the funds that make money should make profits, for your reference only!

Do money-making funds need to make a profit?

In fund investment, take profit is an investment strategy that is higher than the purchase cost and sells, and finally obtains actual income. In fact, it is: "When you are well, you will be safe!"

When the market rises better, the rate of return of the fund will also rise, and naturally we will not sell the fund; However, when the market falls, the yield of the fund will also fall. Many people can't grasp the opportunity to retreat and calculate the expected rate of return, so they will miss the best opportunity to take profit and finally play until they don't make money.

Generally speaking, there are two kinds of mentality in taking profit selling, one is active selling and the other is passive selling.

The former means that investors take the initiative to sell when the fund rises in order to achieve the purpose of profit. The latter refers to a way of stop-loss selling and stop-loss hedging in the case of loss.

Many funds buy new leeks at will when they first enter the market. The number of funds is large, not to mention the imbalance of the plates. The fixed investment has changed, and then the wrong profit, hesitation, regret after selling, and then a vicious circle has begun.

So when and how to take profit is the key. For when to make a profit? There is a formula: fixed investment should be profitable not only in the early stage, but also in the middle and late stage.

In the early stage of fixed investment, investors just entered the market, and it takes a cycle for funds to "fly for a while" in the market.

There are not many funds accumulated in the early stage, even if the considerable profit target is achieved, the income will not be too much, and the redemption is of little significance, which not only reduces the efficiency of the use of funds, but also cannot play the role of compulsory savings.

However, in the middle and late period of fixed investment, some assets have accumulated, and the role of the leveling cost of new shares has gradually weakened. If the market is adjusted back or down after rising, assets will face a sharp decline, and we must find ways to take profits.

It is said that the fund should invest for a long time, so should it take profits? If you meet your psychological expectations and don't want to suffer too much fluctuation, there is no conflict between appropriate profit-taking and long-term investment. When setting the expected return, it should not be too high or too low. Frequent triggering of take profit will generate more transaction costs.

When setting the expected return, you need to consider your own expectations and the average level of similar funds. If there is no clear investment target, and the money will not be used for a long time in the future, it is recommended to choose a high-quality fund with stable long-term performance for long-term investment, so that it is easier to get a good investment experience.

How does the fund make a profit?

1, target take profit method

Target profit-taking method is the simplest profit-taking method, which is very suitable for novice Xiaobai.

First, set profit targets. You can determine this profit-taking target according to the investment period of the fund. The profit-taking target can also be determined according to the accumulated income.

For example, the average annualized rate of return 10% will stop profit, and 10000 yuan will stop profit. For another example, if the investment is less than 1 and the annual rate of return reaches 8%- 10%, you can take profits; If the annual return rate of investment in 1-2 years reaches 12%- 15%, you can make a profit. If the return on investment reaches 18%-20% in 2-3 years, you can make a profit.

The greater the target rate of return, the longer it will take to reach the target.

The target rate of return method is simple and rude, which can help us get a fixed expected annualized rate of return; It is easy to use in practice. Suitable for low-risk partners, keep the income firmly in their own hands.

However, setting goals still requires skill. If you set it too high, you can't sell it. If the setting is too low, you may miss the rising peak. In addition, if the set target rate of return is too low, it may be redeemed frequently, and the probability of buying a more cost-effective fund after redemption will also be reduced.

2. Maximum withdrawal and profit-taking method

What if the market continues to rise after I sell it? We can use the maximum retreat method. Generally speaking, take profit is calculated according to the decline of the highest point.

In other words, if the fund has been rising now, hold it first, and when the fund starts to fall after the highest point, compare the rate of return with your psychological expectation, and you can take your shot.

Of course, if you find that the profit of the fund can't reach our original goal when you sell it, you can choose to keep it. After all, the fund's money can be used for long-term investment.

You can judge the scope of withdrawal according to your own situation, or you can consider redeeming in batches to make a profit.

The maximum retracement and profit-taking strategy is to set a maximum retracement threshold on the basis of your target rate of return, not just to make a profit after reaching the profit-taking target. When it falls below the maximum withdrawal threshold, take profit and redeem it.

This method is more suitable for bull market, and can get higher income than expected. After redemption, there will be no regrets, no psychological pressure, and no need to worry about the big bear market being cut. However, it is easy to seize the opportunity when the market is adjusted back, and it is also easy to miss the best redemption point.

3. Valuation profit method

Valuation profit is another common profit-making method in the market. The principle of valuation taking profit is to start fixed investment when the index valuation is low and sell it when the valuation is obviously overvalued.

However, the disadvantages of profiting from valuation are also obvious, because the valuation of Daniu will be obviously overestimated in the middle and late period, and investors may have to wait 7- 10 years to cash in, so holding time requires investors' great patience.

This method is suitable for excellent broad-based index funds, such as strategic weighted index funds; The other is excellent industry index funds, such as consumption and medicine.

In addition, you can also refer to indicators such as return on net assets and dividend ratio. The higher the ROE and dividend yield, the stronger the profitability, and the easier it is to be underestimated.

4. Dynamic position adjustment and profit-making methods

Dynamic position adjustment and profit-taking method can set the profit-taking point as the profit-taking method that changes the position with the change of market conditions.

If you can flexibly use the target take profit method mentioned above, then you can flexibly operate the take profit point and set multiple take profit targets for yourself, and you will dynamically adjust the position take profit.

When the target rate of return is 10%, the profit is 30%; When the target rate of return reaches 20%, a position with a profit of 20%; When the target rate of return reaches 30%, take profit 10% position; When the target rate of return reaches 40%, take profit 10% position; When the target rate of return is 50%, take profit 10% position.

If the operation is done properly and step by step, the ideal income can be obtained to the maximum extent.

However, this method requires rich investment experience, stable psychological endurance and poor universality, which is suitable for high valuation funds.

In terms of redemption methods, investors can also pay attention to some skills, such as setting three-level redemption targets, triggering the first redemption target and redeeming 1/3, triggering the second redemption target and redeeming 1/3, and so on. If the subsequent funds rebound to the first withdrawal target, the redeemed 1/3 will be added back. The advantage of this is that in the case of unpredictable market trends, double insurance can be realized. If you turn around all the way down, you can make a profit in time. If the market is only slightly adjusted back and rises back soon, then you can increase your position in time to ensure that the subsequent profits will not be damaged.

Financial proposal

1, fund investment is more of a way of managing money, and it won't make you rich overnight. Don't expect to buy at the lowest point and sell at the highest point.

2. The profit after profit can be rolled into the next round of fund investment or fixed investment, resulting in considerable compound interest effect.

3, remember! Investors should have a correct attitude and be content with what they have, so as to have a stable income.

Do money-making funds need to stop making profits?

★ Introduction to Xiaobai Fund

★ Understand the basic knowledge of the fund.

★ Introduction to the Operation Guide for Fixed Investment of Funds

★ Investment Guide for Fund Market

★ Investment and financial planning process

★ The fluctuation rhythm of the stock market in each month of the year

★ Introduction to Xiaobai Fund

★ Introduction to the Operation Guide for Fixed Investment of Funds