First of all, we need to make sure that the idea that the fund insists on long-term investment is definitely right, and there is no problem.
If the fund is held for a long time, the probability of making money will be higher.
There is no doubt about it. Through the back test of historical data, it can be found that there is a positive correlation between the holding period of funds and the proportion of positive returns. In other words, the longer the fund is held, the greater the probability of the fund making money.
Holding a partial stock hybrid fund for three years, the proportion of positive returns of the fund will be close to 80%. If you continue to extend the holding time, the positive return ratio of the fund will continue to increase to 90%.
Therefore, the holding time of the fund is directly proportional to the probability that the fund will get positive returns, and long-term holding will help improve the possibility of making money for the fund.
Moreover, if you are in a volatile market, frequent trading may make you not only make money, but also lose money.
The A-share market as a whole showed a wide fluctuation trend. Most of the time, the market is in a state of fluctuation. In this case, it is difficult to grasp the trend of the market. In the uncertain situation, if we choose the right time again, the probability of making mistakes will increase. At this time, it is better to hold the fund and wait for the market dividend.
Of course, after all, this market is volatile and the fund operation is changing. When we say that we hold the fund for a long time, we don't mean that we will leave it alone after buying it. We need to adhere to the concept of long-term investment, and at the same time, we need to make profits in time according to market conditions and our own needs.
Then, when can our fund consider profit-taking and when should it be held for a long time?
We can analyze it according to the specific situation.
For funds with excellent long-term performance, they have good strategies for a long time.
Long-term outstanding funds, their performance will continue to improve with the high-quality management of fund managers. Excellent fund managers will adjust their positions in time according to market conditions. Even if the current market is not satisfactory, the fund may still hit a new high in net worth.
According to the statistics of financial institutions, when the Shanghai Composite Index /zs00000 1.html stood at 3,400 in early July 2020, although there was still some time to go from the previous high of 5 178, the cumulative unit net value of nearly 500 active equity funds exceeded the cumulative net value at that time.
Therefore, when the underlying fund is of high quality, what we can hold for a long time will be held as long as possible.
Of course, in some cases, it is necessary to take profit appropriately.
For example, when you start investing, you invest in a certain time target, so when your investment target has been reached, you can make a profit in time.
Secondly, related theme funds can make profits in a timely manner.
Industry theme funds are funds that focus on investing in a certain industry or a certain theme. These funds have obvious periodicity and great volatility.
When the sector rotates or the policy changes, the foundation faces a greater risk of withdrawal. If the fund you hold already has a certain income at this time, you can consider taking profits in time and pocketing the profitable funds.
Investment should comprehensively consider risk preference, expected rate of return and capital demand. If your risk tolerance is not high and your income has reached the expected goal, you can consider taking profits.
Long-term holding and timely profit-taking are not contradictory, but flexible measures taken according to market conditions.
I hope the above contents are helpful to you.