Under what circumstances does the fund make a profit?
1 Judging by the funds held.
If investors hold index funds or theme funds, they can consider taking profits when the fund index or the whole sector is overvalued. If users hold non-theme active management funds, they can continue to hold them as long as the market as a whole is not overvalued, and if they are higher than the whole, they can take profits.
2 according to the set profit-taking point to judge
Investors can set a specific rate of return as a take profit point, and when the fund's rate of return reaches the corresponding rate of return, it will begin to sell the take profit. However, the take profit point should not be set too low to avoid frequent redemption, and the take profit point should not be set too high to easily miss the best take profit time.
In addition, fund investment can also spread risks and make effective profits through investment portfolio, and the simplest way is to rebalance asset value. Investors need to redeem all at once after reaching their profit-taking point, and then start a new fixed investment.
Funds tend to have a large amount of money. Naturally, the trend of funds often reflects the trend of the market or industry cycle. In the usual operation, when the fixed investment reaches its expected rate of return, some funds will be redeemed first, and the rest will be used to cope with the possible further increase in the later period. The fixed investment of the fund is also a long-term investment, so it is very necessary to set a profit-taking point.