How do funds buy on dips?
Buying funds on dips means buying in a lower position, not pursuing the lowest position. After all, there is only a lower, no minimum. When you find that a fund has been falling recently and its net value has fallen to a relatively low position, buying is called bargain hunting.
For example, the net value of a fund on the last day of last month was 8 yuan, which has been falling recently, and its net value has become 5 yuan. Buying at this time is also called bargain hunting. But we should pay attention to the timing of bargain hunting and analyze the quality of this fund. Not every fund that falls is worth buying on dips.
First, observe the trend of the overall fund market. If the overall trend of the fund market is better and there is a normal decline, then you can make up the position appropriately. If the market is not particularly good and tends to continue to decline, it may not be recommended to buy, because at this time, if the bargain-hunting is afraid of copying halfway up the mountain, it will increase the probability of loss.
When you plan to buy on dips, you must judge whether the fund market is on the rise or on the decline. Furthermore, whether the fund is worth holding can be analyzed from its historical performance and fund manager. Finally, when you plan to buy a fund, you should ask yourself whether you have spare money to invest for a long time and whether you have the patience to hold it for a long time. After all, it may take more patience and longer to buy a fund in a falling position.
After reading the above introduction, I believe you have a good understanding of how the fund buys on dips. Professionals always suggest that when buying a fund, it is better to buy it when it falls than when it rises, because the fund changes back and forth. If you bought a rising fund, you probably bought it at the top of the mountain.