Investment funds do not recommend making short-term fluctuating money.
Compared with funds, the stock market is more suitable for short-term operation. If the fund makes money in the short term, it is likely to miss the bull market!
Whether to sell or not to sell in the short term is based on investors' own predictions about the market outlook.
If individual investors are inexperienced and rely only on feelings, it is easy to make wrong decisions.
Professional investors should not only look at how much money the fund has earned for themselves in the past, but also look at how much money the fund can earn for itself in the future.
The cost of fund redemption is not low, and the short-term transaction cost of funds is much higher than that of stocks.
Buffett said that the capital market is a wealth redistribution system, which transfers money from impatient people to patient people.
This is why many people advise fund investors to stick to long-term investment and reduce trading frequency.
But if it is the following two situations, you can redeem the fund decisively.
First, at present, the market is at a high level and the risk is high. It is still necessary to resolutely redeem and let the funds fall into the bag.
Second, if the performance of a fund has been weak, and compared with other funds in the same period, the performance and increase are much worse, then you can consider doing fund conversion and redeeming the long-term weak fund.