Making up positions when the fund falls can reduce costs, so some investors are more willing to add positions when the fund falls, but they will have some doubts because they don't know much about the fund. So today, Bian Xiao arranged some for all of you here. Let's have a look!

Every time the fund falls, it covers the position, right?

Funds don't have to cover their positions every time they fall, because some funds will fall for six or seven days in a row when the market is bad, so there is no need for funds to cover their positions every time they fall. Generally speaking, the fund makes up the position first because there is no problem with the fund itself, and secondly, it is recommended to make up the position when the fund has development prospects.

Make up the position also depends on the situation. Although covering positions can reduce costs, if the fund itself is not good and always falls more and rises less, then covering positions will only aggravate risks and increase losses. You must choose a good fund to cover your position.

When a fund falls by 30%, it is generally a deep cover position. It is impossible to know when the cover position will double, because there are many funds, and the situation of each fund will be different. Just be careful not to chase after the heights when covering the positions.

For example, covering the position when the fund rises will increase the risk. If you are optimistic about the fund, you can choose to cover the position when the fund falls, which can reduce the buying cost and reduce the risk. However, when the fund falls by 30%, it is a case of falling more. If you want to recover your capital quickly, you must increase the strength of covering your positions, but poor investment will aggravate your losses, so you must be careful when covering your positions.

Should the fund plummet to cover the position?

The reason for the fund's plunge should be analyzed: the fund itself or the market is not good. The advantage of the fund's short position decline is that it can reduce the cost of holding positions, and it is easier to withdraw funds when it rises, but similarly, short positions will increase the funds held, and once it continues to fall, the asset loss will be more serious. Therefore, we must be cautious when covering positions, and we must not blindly cover positions, which will only increase risks.

If it is because of the fund itself, for example, because the fund manager's ability is not good, there is an operational error, which leads to the fund's plunge, or the fund's own position is relatively high, then it is not recommended to make up the position.

However, if it is because the market is not good and the market falls, but there is a rebound trend in the later period, but the fund itself is fine and its past performance is excellent, you can consider covering the position.

Because the fund can get more shares of the same amount when the net value falls, adding positions at this time can increase our holding share, reduce the average position cost and spread risks. As long as the fund's net value rebounds above the original position cost, it is possible to earn it back.

Fund coverage skills

Tip 1: Fixed investment purchase fund method

When the fund falls sharply, you can consider buying the same share of the fund every time to reduce the buying cost. For example, if an investor has 10000 yuan, when the fund continues to fall, the amount of each purchase is 2000 yuan, and the fund is bought in five times, so that when the fund rises, the price may exceed the investor's position cost.

Tip 2: Buy Down Method

When the fund is falling, investors can set a falling range and buy as long as it falls to this range. For example, when the fund falls 10%, they will increase their positions once, and when the fund falls 10%, they will increase their positions again. This method can quickly spread the cost of holding positions, but it should be noted that investors have low positions and should be optimistic about funds and markets.

Tip 3: Equal ratio Masukura method

For example, if there is 10000 yuan in the fund, then we can consider covering the position by 20,000 yuan when it falls 10%, and covering the position by 40,000 yuan when it falls 10%, and so on. This method can also reduce the cost of buying, but only if the fund has prospects. If you choose a bad fund, you will only lose more and more.