There is a saying in fund investment that the fund takes profit and does not stop loss. The meaning of this sentence must be known to many investors, but I don't know why. Why doesn't the fund take profit and stop loss? Let's take a look.

Why does the fund stop more than profit?

1. Some funds have relatively small fluctuations and generally do not need to stop losses, such as money funds and bond funds.

2. For equity funds, when the fund falls, the fund manager will replace some weaker stocks with stronger ones, so that the fund trend will change from a downward trend to an upward trend.

3. When investing, investors can adopt the investment strategy of fixed investment, that is, in the process of fund decline, they will continue to increase their positions and holdings, share the costs equally and spread the risks.

Generally speaking, the purpose of fund stop loss is to make investors have a good investment habit, so that investors can hold funds for a long time and get higher returns. Of course, not all fund stop-loss stops are considered under some special circumstances, such as poor performance and fund manager replacement.