Does the fund make a profit by selling all or only the proceeds?
Fund profit-taking can be sold as a whole or in batches, and investors can decide for themselves according to the actual situation. When the fund's income reaches the target income set by investors, it can take profits. Because investors can't accurately judge the future trend of the fund, they can sell part of it first to ensure the income and the safety of the funds. When the fund continues to rise, it can sell some more until the fund is sold completely; When the fund shows a downward trend, investors can sell it all.
The following three methods can be used for reference:
1 target income method: investors need to set different profit-taking points according to the market situation of the year, such as profit reaching 15%, lightening positions by 50% to 25%, and clearing all positions. If it is a long-term fixed investment product, you can also set the take profit point through the annualized rate.
Maximum withdrawal method: When the market fluctuates, but the target rate of return does not meet expectations, you can consider using the maximum withdrawal method to redeem the original profitable fund.
3 valuation take profit method: if investors buy index funds and have been at a low valuation, they will continue to hold them; When the valuation percentile is higher than a certain value, it can be sold in batches or in whole.
In the actual operation of fund profit-taking, investors still need to use the above profit-taking methods flexibly according to their own risk tolerance and market conditions.
Generally speaking, because it is difficult for investors to grasp the upward trend of each fund, if they hold it for a long time and do not make profits in time, it is likely that the principal and income of the fund will suffer losses when the market falls; However, funds can't purchase and redeem frequently, because this will not only lead to investors chasing up and down, but also generate more transaction costs.