Although the fund investment should be good at long-term holding, in some cases, it is still necessary to consider redeeming or replacing the fund.
When the big economic cycle changes, we need to adjust the allocation of large-scale assets according to the economic cycle. We can refer to Merrill Lynch's investment clock: in the economic recovery stage, we can focus on the allocation of stocks, which can increase the positions of stock funds or hybrid funds; in the overheated stage, we need to focus on the allocation of commodities; in the stagflation stage, we need to focus on the allocation of cash; in the recession stage, we need to focus on the allocation of bonds. Stagflation and recession can increase the allocation ratio of bond funds.
When you are not optimistic about the investment direction of the fund at all, for example, you are not optimistic about the main investment sector or theme of the fund you hold, or when the current valuation of the sector is already high and the investment risk is great, you can consider switching to other funds.
When the long-term performance is unsatisfactory, please note that this refers to the long-term performance of the fund. Don't worry too much if the performance of the fund is only inferior after a few months. This is normal. Give the fund an appropriate inspection period, about three months to one year. If the performance continues to be poor, you can consider replacing it.
When the investment ability of the fund manager has not been recognized by you, you can consider redeeming the fund. If you don't trust the investment ability of fund managers, you can't maintain a good investment mentality. If you think the fund manager can't meet your needs and don't recognize his investment philosophy, you might as well change people as soon as possible.