What if the fixed investment fund loses money? What if the fund loses money? How to remedy it?
Reasons for fund losses:
Buying a fund is different from buying stocks. Affected by its intrinsic value, the stock price has its reasonable range. Too high and too low can't last. But the fund is operated by the fund manager, who can enter the market at any time, quit at any time, increase or decrease positions, etc. These behaviors will affect the total assets of the fund, and then affect the net value of the fund unit. The net value of the fund is accumulated for a long time, which is the result of the long-term management of the fund manager. On the contrary, a high-net-worth fund can better explain that the fund was well managed in the past.
"Will it fall" does not lie in the level of the fund's net value, but in the level of the market and even the valuation of the fund's stocks. The low net value of the fund may be due to the dividend or split of the fund, or it may be the result of the poor performance of the fund in the past and the failure to accumulate the expected annualized expected income. So don't blindly deny high-net-worth funds, let alone blindly believe in low-net-worth funds.
Timing of fund sales:
1. When the fund manager changes, it is recommended to choose a better position and sell to lighten the position.
This helps to reduce your risk. Buying a fund is different from buying stocks. Funds are basically controlled by fund managers. If your fund manager is better, you can make money. On the contrary, it will definitely lose money. So sell and lighten up first, and then observe the ability of this fund manager. If you can, you can add a position to buy. No, even if you lose money, you won't lose that much. The purpose of our investment is to make a profit. So I would rather earn less than lose money. This is the bottom line.
2. When there is a signal to continuously raise interest rates.
Yang Ma said that if the interest rate is raised, then the funds will naturally flow to the money market, and there are so many market funds. When the money market increases, the securities market will decrease, the circulation will decrease and the activity will decrease. In addition, the expected annualized interest rate rises, prices rise, the operating costs of enterprises increase, and the expected annualized expected earnings per share naturally decline. The stock fell, and the fund was not spared. So this time is suitable for selling funds.
3. The net value of the fund continued to fall.
Unlike stocks, funds hold a fund for a long time and generally have a low probability of losing money. If you buy at a high point and the market is not good, and the performance of the fund you buy is still very average in recent years, and the net value has been falling, then it is necessary for you to stop in time.
4. When the market has a high point.
Investment funds must be sold at a high price and bought at a low price to make money. But many people watch the fund go up, and they may still think that they will sell it if they earn more, but it will never end. In the end, I didn't earn as much as before. In view of this situation, it is suggested to set a profit-taking target. Once you reach this point, you will not hesitate to sell decisively.