First of all, we should learn to judge whether the index fund we hold is a good target worth holding for a long time.
Look at the performance first. If an index fund's short-term or medium-term performance has been ranked lower among similar funds, such as the last month or three years, it is necessary to consider whether to choose to sell. The comparison of fund income needs to be compared with the same type of funds at the same time, and it is meaningful, and it should be compared equally.
Look at the index corresponding to the future growth of the industry. Large consumption, medical index and other funds, the long-term market is rising, and there is no need to worry about the callback in the short term. The price will eventually return to value. As long as the future prospects of the industry are still good, falling to a reasonable valuation range will lead to good investment opportunities.
However, if the industry is already in the sunset industry and the future prospects are bleak, holding such index funds also needs to be out in time.
Next, look at the size of the fund. If the scale of the fund keeps shrinking for a long time, or even falls below 1 billion for a long time, such a fund is likely to face the risk of liquidation.
On the other hand, when the general trend style of the market changes, such as small and medium-sized stocks rising sharply and large-cap stocks falling, the natural income of such funds will gradually decline. If you have a low tolerance for losses, you can also consider going out in time.
The excellent performance of the fund is also closely related to the operation of the fund manager. The stability of fund managers is also an index we need to refer to. However, index funds are far less dependent on fund managers than stock funds, so they can be included as reference.