The fund should always make up the position, which needs to be answered by consulting relevant information. According to years of learning experience, if you answer the fund to make up the position frequently, it will make you get twice the result with half the effort. Here, I would like to share the relevant experience of fund covering positions for your reference.
The fund should always make up the position.
Funds should constantly make up positions, which is a way to reduce costs. When the fund falls, you can increase the position appropriately in order to lower the average price and thus reduce the cost. However, if the fund risk is too high and the market trend is not good, jiacang will not only not reduce the cost, but will make the investment chase high. Masukura is a buying behavior that turns a high price into a low price, provided that the low price is taken into account.
Time to lighten the position after the fund covers the position.
The time to lighten the position after the fund covers the position depends on the net value of the fund and the amount of covering the position.
If the net value of the fund is relatively high, it needs to be operated carefully, and the number of times to cover positions and the timing to reduce positions need to be grasped. Generally speaking, it is suggested to cover positions in batches when the net value of the fund is relatively low, which can reduce the cost. After the cost is reduced to a certain extent, you can consider lightening your position and using the funds for other investments.
It should be noted that the time point of lightening positions needs to be determined in combination with market conditions and fund performance, and positions cannot be lightened blindly.
What is the principle of fund covering positions?
Fund covering position is an investment strategy, which is mainly applied to stock funds or index funds. The specific principle is as follows:
When the fund falls, investors decide to cover their positions, that is, buy at a low price to spread the cost. Suppose an investor buys a fund 1000 at the price of10 yuan/share, and the fund falls to 9 yuan/share. In order to reduce the cost, investors decided to buy 1000 shares, and the position became 2000 shares. If the fund continues to fall in the future, investors will continue to buy, and so on, until the cost drops to a certain extent.
It should be noted that the risk of covering positions depends on the characteristics of the selected fund. Equity funds are suitable for long-term holding, not short-term covering positions; Index funds follow the index fluctuations and can be held for a long time.
How to make up for the loss of fixed investment funds?
The best way to make up for the loss of fixed investment funds is to buy in batches.
Buy more fund shares at the same cost and reduce the average cost. Suppose you buy a fund that loses money, and it still loses money after the first purchase, then the second time you buy it at a lower price, your overall cost will be reduced.
The best time for fixed investment funds to make up positions should be to enter the market after the decline. At this time, no new funds enter and no one dares to take over, so as to achieve the effect of sharing costs equally.
Is the fund plunge selling or covering?
There are two situations in which the fund plummets. First, the decline in the fund's net value may be a problem with the fund manager's investment strategy, which is generally not suitable for covering positions, because covering positions also requires a decline in the fund's net value. If the net value of the fund falls because of the problem of the fund manager, it is likely to fall again after covering the position. Second, the decline in the net value of the fund may be affected by the market environment or individual stocks and industries. If the decline is not far from the low point of net worth, then you can consider covering the position and diluting the cost through covering the position. If you cover the position near the low point of net worth, then the market outlook can recover quickly.
It should be noted that investment is risky, and the collapse of the fund does not necessarily mean that there is a problem with the investment strategy of the fund manager. Investors should choose whether to cover their positions according to the long-term performance of the fund.
This is the purpose of the fund to continue to cover positions.