Transformation of target change

Every investor has his own investment goal, which can be short-term or long-term. When the goal changes, the investment strategy needs to be adjusted accordingly. For example, if investors intend to prepare for retirement or children's education funds after they get married and own real estate, they can consider redeeming the current funds, converting them into stock funds with large fluctuations and high returns, or buying suitable insurance products.

Generally speaking, the closer to the financial management goal, the greater the proportion of bonds in the fund portfolio. Even if the fund is sold for a short time, it will not suffer too much loss because of the small fluctuation of the net value.

Seek a new balance

Even if the investment target and asset allocation plan have not changed, investors may consider redemption because of the fundamental changes in the actual operation process and the asset ratio of the fund portfolio has changed. Specifically, there are two situations. First, the fundamentals of listed companies may change. For example, investors buy funds that focus on investing in small-cap stocks, hoping to increase the positions of small-cap stocks in the portfolio. However, due to the changes of listed companies themselves, their stocks have changed from small-cap stocks to large-cap stocks, so if fund products invest in the stocks of these listed companies, the proportion of small-cap stocks will also change, which is no longer in line with investors' initial investment assumptions; Secondly, the fund manager changes, and the corresponding investment style also changes. If fund managers keep adding large-cap stocks, it will lead to a large number of large-cap stocks in the final investor's personal portfolio. At this time, investors need to redeem their own equity funds in order to adhere to the original intention of investment.

The performance of the fund did not meet expectations.

There are also two situations here. First, frequent adjustments, frequent trading by investors, not only have to pay a lot of application (recognition) subscription and redemption fees, but also time-consuming and laborious, and the time cost and opportunity cost greatly increase, resulting in poor fund performance; Second, contrary to the above situation, the performance of the fund is better than investors' expectations, and investors can also consider redeeming the fund and putting it in a safe place. Because high performance may be accompanied by higher risks.

The macro aspect is not optimistic.

Macroeconomy will always have a certain impact on the securities market. The subprime mortgage crisis in the United States, the continuous appreciation of the renminbi and the high CPI have also had a certain negative impact on the market. In the first quarter of 2008, the whole market fluctuated and adjusted, and many investors panicked and sold. Although the regulatory authorities have recently introduced a "combination boxing", it is still difficult to determine to what extent this move can effectively enhance market confidence. If investors have clear investment ideas, are not optimistic about CPI indicators, feel that the trade surplus is abnormal and are skeptical about the steady economic growth, then investors are advised to redeem the fund.

There is too much pressure to hold funds.

There is no market that only goes up and doesn't fall, and there is no product that only makes money without losing money. It is necessary for investors to know the degree of annual loss when the fund performs worst when buying, so as to know fairly well. If the pressure is too great because the fund in hand fluctuates too much, it will be uncomfortable every day because of the change of the net value of the fund. In this case, the risk level of the fund has exceeded the affordability of investors, and the fund should be resolutely redeemed at this time.