The fund has fallen, should it be redeemed?
Whether the fund should be redeemed depends on the specific situation. Under normal circumstances, as long as it is not for policy reasons or in a bear market, redemption is not recommended. The capital market is unpredictable, and ups and downs are common. If you purchase and redeem funds frequently, it will not only increase your transaction costs, but also easily lead to high buying and low selling. In addition, the fund itself needs to be held for a long time, especially the products invested by the foundation, not to mention redemption in the short term. Because the more you fall, the more stocks you buy at a time. After covering the position, the cost will naturally be diluted. On the contrary, if it is redeemed as soon as it falls, the market fluctuates frequently, and our frequent subscription and redemption will lead to an increase in transaction costs. Take a fund as an example. If you redeem it when it falls, it will rise again later and then buy it. Not only is it unprofitable, but it has been losing money.
Therefore, when the fund falls, we should carefully choose the appropriate redemption opportunity, which can be considered from the following aspects:
1 Why did you buy this fund in the first place?
Do you still have what attracted you to this fund?
How do you feel when you hold this fund?
4 after selling the fund, is there a better investment choice?
If the reason why we choose this fund has not changed, the fund manager has not changed, and the investment strategy has not changed, we might as well wait and be a patient investor in the face of short-term market fluctuations.