Although the fund is an investment product suitable for long-term holding, it also needs to make a moderate profit under appropriate conditions.
There are several main purposes for the fund to make a profit.
First, lock in fund income. After selling the fund, your income really belongs to you. Otherwise, it's just floating profits and losses. The most important purpose of fund profit taking is to lock in profits.
Second, to prevent profit-taking, the market fluctuates greatly, even high-quality funds can't avoid fluctuations, and the net value of funds can't keep rising. When the income reaches a certain level, the market will continue to rise and the risk will increase. At this time, the appropriate profit-taking is to prevent profit-taking during market adjustment.
Third, invest after making profits. Profit-taking does not mean the end of investment. If it is an excellent fund target, you can choose to continue investing after making a profit. Control risks and continue to grasp benefits.
Fund profit-taking needs certain skills. Effective profit-taking strategies commonly used in the market mainly include target profit-taking, extraction profit-taking, batch valuation profit-taking and constant market value profit-taking.
Target profit-taking method refers to setting a profit target and choosing profit-taking after reaching the target.
The exit-take-profit method means that in a bull market, if the fund withdraws and reaches a pre-set standard, such as 5%, it will take profits.
Batch valuation take profit method refers to the use of valuation indicators to evaluate the index, when the valuation is higher than a certain value, start batch take profit.
The profit method of constant market value refers to the profit method of controlling the investment principal in a certain proportion and harvesting the profit part.