Equity fund is a long-term investment tool, which pays more attention to the long-term investment return. If you make a long-term plan before investing, you can wait patiently for the investment goal to be realized without paying too much attention to the short-term fluctuation of the fund. Besides the market fluctuation, the fund's income is also closely related to the investment style of fund managers and the strength of fund companies. If the fund selected before is not the best one for you, there is also a need for adjustment after buying. If a fund has a loss, whether to redeem it may need to be judged in combination with the following aspects:
1. If you need money urgently, you must redeem it regardless of whether the fund is a loss or a profit. Redemption of the fund at the time of loss is a great loss, but if there is no other way to solve the source of funds, redemption may be the only way. The real solution to this problem is to make sure that this fund will not be used in the short term before deciding to invest in equity products. Referring to the previous bull-bear cycle, it should at least be a fund that will not be used in 3-5 years. Otherwise, we should consider other investment varieties that can meet flexible redemption.
2. What needs to be determined is whether this fund still conforms to the logic of holding. Investors definitely like good funds, and judging whether they are good or not can refer to a lot of information, such as past performance, past performance of fund managers, ratings given by rating agencies such as Morningstar, and so on. If, after re-evaluation, it is still considered to be a good fund, then the loss is likely to be only temporary and there is no need to stop loss, and you can continue to hold it or even lower the cost by purchasing some shares.
3. When deciding whether to redeem a fund, we usually care about three indicators: the quality of the fund, the current profitability and the current valuation. If the current valuation is high, but it is still a loss, the only reason is that it is too expensive. It was a previous wrong decision that led to the current loss. At this time, whether you should redeem the stop loss or continue to hold it depends mainly on the amount of funds. According to the inverted pyramid buying method, if the proportion of funds bought at a high level is not large, you can wait for the decline, then increase the proportion and buy again to lower the whole position cost. If the amount of funds is large, it is safer to reduce the proportion when it is overestimated. The judgment of valuation mainly refers to historical data to see the position of the current market valuation in the past, such as the gap between the current index average PE and the historical highs and lows.
Tips: The above information is for reference only. Different funds have different styles. When comparing, you should choose an index similar to the fund style as the basis for comparison. If the fund is a value investment, it may be more accurate to refer to the dividend index. For details, you can look at the matching degree between the fund's positions and the constituent stocks of the index.
Response time: November 22, 221. Please refer to the latest business changes announced by Ping An Bank in official website.