If citizens hold index funds (linked funds of ETF funds, index LOF funds or index enhanced funds, etc.). ), when the floating profits reach their satisfactory results, citizens should consider redemption. A major feature of index funds is that they will follow the market ups and downs, and their shareholding ratio is relatively fixed. Once the index fund held by the basic people has reached a profitable stage, it often means that an index has reached a strong position after continuous rise. According to the principle that "no assets can rise to the sky", the citizens will feel lucky at some stage after redemption when they conduct redemption transactions at this time, because such indexes are often easily killed when they encounter bad news, releasing the risks accumulated in the process of rising.
On the contrary, if the citizen holds an actively managed fund and can't decide which one to redeem in a pile of fund positions, it is best to give priority to redeeming the fund that caused the floating loss (especially the floating loss is not particularly large). Active management fund is a fund that the fund manager adjusts the stock position according to his own judgment. The net value of this fund tests the fund manager's ability of timing, stock selection and risk control. When the net value of actively managed funds underperforms peers for a long time, it often means that the management ability of fund managers is average. After all, if the style of a fund manager does not match the current market style, the fund may underperform the market in stages, but the market style will often rotate. Fund managers who can stick to their own investment strategies will often get good net income when the market is conducive to their own style. On the contrary, the net value of a fund can outperform its peers in any market environment, which only shows that its fund manager can't. At this time, Ji Min should stop the loss without hesitation.
Investment is risky, so be cautious when entering the market. This principle also applies to the fund investment field.